Friday, July 19, 2019

KPPU has completed the examination of Case Number 08/KPPU-L/2018 regarding Alleged Violation of Article 5 Paragraph (1) of Law Number 5 Year 1999 regarding Prohibition of Monopolistic Practices and Unfair Business Competition in the Freight Container Service Industry in the Surabaya to Ambon Route by 4 Shipping Companies.

The shipping companies as intended in the a quo case are the shipping companies with the Surabaya to Ambon route, the permits and ship specifications owned of which are merely used for container services. The freight container service tariff agreement for the Surabaya to Ambon route was entered into by 4 shipping companies, namely PT Tanto Intim Line, PT Pelayaran Tempuran Emas Tbk, PT Meratus Line, and PT Salam Pasific Indonesia Lines. The existence of the price adjustment letter from each of the Reported Parties within a near period has proven the existence of a form of agreement to fix the amount of the freight container tariff.

KPPU then decided to sentence the reported parties to pay for a penalty in accordance with the considerations of the Commissioners’ Council. PT Tanto Intim Line is sentenced to pay for a penalty amounting to IDR 7,154,000,000.00 (Seven Billion One Hundred and Fifty-Four Million Rupiah), the penalty imposed on PT Pelayaran Tempuran Emas, Tbk is IDR5,642,000,000.00 (Five Billion Six Hundred and Forty-Two Million Rupiah), and the penalty that imposed on PT Meratus Line is IDR 6,580,000,000.00 (Six Billion Five Hundred and Eighty Million Rupiah), while the penalty of PT Salam Pasific Indonesia Lines amounts to IDR1,415,000,000.00 (One Billion Four Hundred and Fifteen Million Rupiah).

In its decision, KPPU puts forward a recommendation to the Ministry of Transportation c.q.the Directorate General of Sea Transportation so as to properly manage the shipping industry so that a fair business competition takes place. In the event that the business actors in the said shipping industry do not apply the principles of fair business competition in running their businesses, then the Government is expected to review the business permits of the said shipping companies.