KPPU has Completed its Assessment on Share Acquisition of PT. Graha Layar Prima Tbk by CJ CGV Co. Ltd..
Jakarta (18/4) – KPPU has concluded its assessment on the share acquisition of PT Graha Layar Prima Tbk by CJ CGV Co Ltd on April 17, 2018. PT Graha Layar Prima Tbk is a company engaged in cinema business, which brand known as Blitz Megaplex. Prior to this share acquisition transaction, CJ CGV Co Ltd has became a minority shareholder in PT Graha Layar Prima Tbk, so the Blitz Megaplex brand has changed CGV Blitz even before this transaction. After this transaction, the cinema brand changed to CGV Cinema. This acquisition is conducted by adding stocks so that CJ CGV Co Ltd has a share of more than 50% interest in PT Graha Layar Prima Tbk.
The acquisition of PT Graha Layar Prima Tbk by CJ CGV Co Ltd is not an acquisition that occurred in a same relevant market, because CJ CGV Co Ltd previously did not control the cinema in Indonesia. Nevertheless, KPPU remains focused on analyzing the cinema industry in Indonesia to identify areas potentially affected by this acquisition transaction. Regulation, cinema industry in Indonesia is regulated generally in Law Number 33 Year 2009 about Film, which also contains elements of prohibit monopolistic practice and / or unfair business competition.
In the market structure, KPPU did not find the change of market concentration level after the acquisition, so KPPU believes that the acquisition of PT Graha Layar Prima Tbk by CJ CGV does not result in monopolistic practices and / or unfair business competition. The CGV Cinema brand is not a market leader in the cinema industry in Indonesia, but with the removal of the cinema industry from the negative list of investment, foreign business actors can perform similar business activities in Indonesia.
Other matter which becomes a focus by KPPU is the continuity of local or independent cinema business actors in facing direct competition with other cinema and multi-national companies. In the opinion published, KPPU will also provide inputs or suggestions to the government to keep in mind the existence of local / independent cinema in the midst of the entry of several multinational network cinema business actors to Indonesia.