KPPU Won the Tire Cartel Cassation in Supreme Court.

Wednesday, June 6, 2018

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JAKARTA – The Commission for the Supervision of Business Competition (KPPU) received a report on the notice of the contents of the Ruling of the Supreme Court of the Republic of Indonesia Number 167-PK/Pdt.Sus-KPPU/2017 dated January 25, 2018 in a cassation case between PT Bridgestone Tire Indonesia and PT Sumi Rubber Indonesia, respectively as Cassation-I Petitioner and Cassation-II Petitioner against the Commission for the Supervision of Business Competition of the Republic of Indonesia (KPPU) as Cassation Respondent, on Friday, May 4, 2018. Whereas the contents of the aforementioned decision are as follows:

  1. Rejecting the aforementioned petition for cassation filed by Cassation I Petitioner: PT Bridgestone Tire Indonesia., and Cassation Petitioner II: PT Sumi Rubber Indonesia;
  2. Sentencing Cassation Petitioners I, II to pay for the case fees in the examination of the cassation stipulated amounting to IDR2,500,000.00 (two million five hundred thousand rupiah).

On December 10, 2014, KPPU previously issued a decision to 6 (six) tire producing business actors, namely PT Bridgestone Tire Indonesia, PT Sumi Rubber Indonesia, PT Gajah Tunggal, Tbk., PT Goodyear Indonesia, Tbk., PT Elang Perdana Tyre Industry, and PT Industri Karet Deli to have legally and convincingly violated Articles 5 and 11 of Law Number 5 Year 1999 regarding Prohibition of Monopolistic Practices and Unfair Business Competition. The Panel of Commission has also imposed penalty on each of the Reported Parties amounting to IDR25 Billion (Twenty-five billion rupiah) that must be paid to the state treasury. Based on the aforementioned Decision KPPU No. 08/KPPU- I/2014, the Reported Parties have file a remedy in the form of objection with the District Court.

At remedy level in the form of objection, the Central Jakarta District Court passed a decision on Case 70/Pdt.Sus-KPPU/2015/PN.Jkt.Pst on July 8, 2015 basically confirming the Decision of the KPPU and changed the amount of the penalty. Subsequently, at remedy level in the form of cassation, the Supreme Court passed a decision on Case Number 221 K/pdt.Sus-KPPU/2016 on June 14, 2015 basically confirming the aforementioned Decision of the District Court and rejecting the petition for cassation filed by the Petitioners, which means confirming again the Decision of the KPPU.

Upon the rejection of the petition filed by the extraordinary remedy Petitioners through Cassation by the Supreme Court, Decision of the KPPU No. 08/KPPU- I/2014 regarding Alleged Violation of Article 5 paragraph (1) and Article 11 of Law Number 5 Year 1999 in Automotive Industry regarding the Four-Wheeled Motor Vehicle Tire Cartel has had a permanent legal force (inkracht).