KPPU Uncovers Chicken Cartel Practices
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The Commission for the Supervision of Business Competition (KPPU) noted at least 12 companies are suspected to be involved in chicken cartel practices. “Now the case has entered the court trial stage,” said Muhammad Syarkawi Rauf, Chairman of the KKPU to us on Wednesday, March 9, 2016.
Syarkawi said that the 12 companies allegedly control chicken prices in the market by applying monopoly. The companies were suspected to work with one another to keep chicken prices high. Syarkawi added that the companies were also suspected to have planned to terminate their parent stock. “This is what we are currently investigating,” Syarkawi said.
Name of the companies suspected to be involved in chicken cartel practice, according to KPPU’s records, include PT Charoen Pokphand Indonesia Tbk, PT Japfa Comfeed Indonesia, PT Malindo, PT CJ-PIA, PT Taat Indah Bersinar, PT Cibadak Indah Sari Farm, PT Hybro Indonesia, PT Expravet Nasuba, PT Wonokoyo Jaya, CV Missouri, PT Reza Perkasa, and PT Satwa Borneo Jaya.
The case was uncovered after KPPU conducted an investigation on early 2016. The companies were suspected of violating Law No. 5/1999 on Monopoly Practices and Unhealthy Business Competition.
On the other hand, chicken companies denied the accusations. “We deny such accusation. The termination of parent stock is based on government regulation,” said Budiarto Soebijanto, Senior Vice President of PT Japfa Comfeed Indonesia last Thursday, March 3, 2016.
Questions & Answers
Q.Which specific law are the suspected companies accused of violating?
Which specific law are the suspected companies accused of violating?
The companies are suspected of violating Law No. 5/1999, which pertains to Monopoly Practices and Unhealthy Business Competition. This law forms the basis of the KPPU's case against them.
Q.What are the primary methods the companies are accused of using to control the market?
What are the primary methods the companies are accused of using to control the market?
The companies are alleged to be working together to keep chicken prices high in the market. They are also suspected of planning to terminate their parent stock to influence supply and prices.
Q.Have any of the accused companies responded to these allegations?
Have any of the accused companies responded to these allegations?
Yes, chicken companies have denied the accusations, stating that the termination of parent stock was based on government regulation. This was stated by a Senior Vice President of PT Japfa Comfeed Indonesia.
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