KPPU Winds up Investigation into Alleged Motorcycle-Industry Cartel

 
Aditya Putra, Fitri Novia Heriani

 

ojk

KPPU's Office. Photo by:RES.

 


The Business Competition Supervisory Commission (Komisi Pengawas Persaingan Usaha/KPPU) has just concluded investigations into an alleged cartel involving two of the biggest motorcycle-industry players in Indonesia, namely PT Astra Honda Motor (Honda) and PT Yamaha Indonesia (Yamaha). Based on the results of an investigation initiated by KPPU in early 2015, these two companies now stand accused of fixing the prices of underbone and scooter style motorcycles.
 
Syarkawi Rauf, Chief of the KPPU, told Hukumonline that the investigation into the price-fixing allegation had now been concluded and that the investigators had gathered enough evidence in order to support a case. Moreover, Mr. Rauf also stated that both of the companies at the centre of the allegation have been named as reported parties (terlapor) and therefore the investigation can now proceed to the case stage in the near future. “The investigation has now officially been wound up”, Mr. Rauf asserted clearly.
 
Meanwhile, Rikrik Rizkiyana, a lawyer from the Assegaf Hamzah & Partners law firm, who are representing Yamaha, told Hukumonline that his law firm had yet to receive any summons from the KPPU stating that their client had been designated a reported party as regards the case question. Mr. Rizkiyana added that although the KPPU is claiming that the investigation has already been concluded, this does not necessarily mean that all of the rules of evidence have been adequately satisfied.
 
Mr. Rizkiyana’s contention is that it is virtually impossible for the cartel allegation that stands against Yamaha to be true, as the motorcycle industry is one of the biggest players in the world of television and electronic advertising. If there is indeed a price-fixing cartel, according to Mr. Rizkiyana, then it would be highly unlikely that the companies involved would invest in high-profile advertising campaigns.
 
“The decision made by the companies to allocate substantial amounts of funding to advertising shows that there is strong competition between the companies”, added Mr. Rizkiyana.
 
Mr. Rizkiyana also explained that Honda was already a well-established and dominant player in Indonesia’s domestic motorcycle industry, where the company enjoys an almost 50% market share. Yamaha, in contrast, has a much smaller market share and thus the possibility of the company becoming involved in any cartel is surely slim, Mr. Rizkiyana concluded.


(rfs/sp)
 
 
Aditya Putra, Fitri Novia Heriani

 

ojk

KPPU's Office. Photo by:RES.

 


The Business Competition Supervisory Commission (Komisi Pengawas Persaingan Usaha/KPPU) has just concluded investigations into an alleged cartel involving two of the biggest motorcycle-industry players in Indonesia, namely PT Astra Honda Motor (Honda) and PT Yamaha Indonesia (Yamaha). Based on the results of an investigation initiated by KPPU in early 2015, these two companies now stand accused of fixing the prices of underbone and scooter style motorcycles.
 
Syarkawi Rauf, Chief of the KPPU, told Hukumonline that the investigation into the price-fixing allegation had now been concluded and that the investigators had gathered enough evidence in order to support a case. Moreover, Mr. Rauf also stated that both of the companies at the centre of the allegation have been named as reported parties (terlapor) and therefore the investigation can now proceed to the case stage in the near future. “The investigation has now officially been wound up”, Mr. Rauf asserted clearly.
 
Meanwhile, Rikrik Rizkiyana, a lawyer from the Assegaf Hamzah & Partners law firm, who are representing Yamaha, told Hukumonline that his law firm had yet to receive any summons from the KPPU stating that their client had been designated a reported party as regards the case question. Mr. Rizkiyana added that although the KPPU is claiming that the investigation has already been concluded, this does not necessarily mean that all of the rules of evidence have been adequately satisfied.
 
Mr. Rizkiyana’s contention is that it is virtually impossible for the cartel allegation that stands against Yamaha to be true, as the motorcycle industry is one of the biggest players in the world of television and electronic advertising. If there is indeed a price-fixing cartel, according to Mr. Rizkiyana, then it would be highly unlikely that the companies involved would invest in high-profile advertising campaigns.
 
“The decision made by the companies to allocate substantial amounts of funding to advertising shows that there is strong competition between the companies”, added Mr. Rizkiyana.
 
Mr. Rizkiyana also explained that Honda was already a well-established and dominant player in Indonesia’s domestic motorcycle industry, where the company enjoys an almost 50% market share. Yamaha, in contrast, has a much smaller market share and thus the possibility of the company becoming involved in any cartel is surely slim, Mr. Rizkiyana concluded.


(rfs/sp)
 
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