KPPU Uncovers Chicken Cartel Practices

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.