KPPU to Further Probe Automatic Scooter Cartel Allegations
TEMPO.CO, Jakarta – The Commission for the Supervision of Business Competition (KPPU) has decided to conduct further investigation on the alleged price cartel of automatic scooter 110-125 cc by PT Yamaha Indonesia Motor Manufacturing (YIMM) and PT Astra Honda Motor (AHM).
The KPPU chairman Syarkawi Rauf said the decision is based on the preliminary investigation report (LHPP) submitted by the Commission Assembly to the Commissioners in a Commission meeting on August 16, 2016.
“The Commissioners have accepted and approved the Commission Assembly’s recommendation on further investigation into the alleged infringement,” said Syarkawi Rauf in a written statement, Sunday, August 21, 2016.
Further investigation will be chaired by the Commission Assembly to draw conclusions on the alleged infringement.
The investigation will see the Commission Assembly examine the evidence submitted by both KPPU investigators and YIMM as well as AHM, summon witnesses, experts and or any other party to obtain enough evidence over the allegations.
Further investigation will end no later than 60 days since the date of its commencement and may be extended for a maximum of 30 days.
YIMM and AHM have allegedly made an infringement of Article 4 of Law No. 5/2009 on price fixing. Price fixing is outlawed because it would kill competition in the market. It could deprive consumers of the possibilities to obtain goods at a competitive price.