Tuesday, March 9, 2021

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(4th of March) Commercial Court at the Central Jakarta District Court has today confirmed the decision of the Indonesia Competition Commission (ICC) with regard to the objection lodged to Case No. 03/KPPU-L/2020 regarding the Violation of Article 20 of Law Number 5 Year 1999 in the sales of Portland Composite Cement (PCC) type in the region of South Kalimantan by PT. Conch South Kalimantan Cement (CONCH). In its decision on Objection Case No. 01/Pdt.Sus.KPPU/2021/PN.Niaga.Jkt.Pst, the Commercial Court upheld the decision of ICC and entirely took over the legal considerations in the Decision of ICC as the considerations of the Decision of the Panel of Judges of the Commercial Court. Decision on the objection constitutes the first decision of the Commercial Court on the objection lodged by a Reported Party to a decision of ICC, since the putting into effect of Law No. 11 Year 2020 regarding Job Creation and Government Regulation No. 44 Year 2021 regarding the Implementation of Prohibition of Monopolistic Practices and Unfair Business Competition.

It is a well-known fact that this case began with a public report and it raised the alleged violation of Article 20 Year Law No. 5/1999, especially with regard to the efforts made to sell at a loss and/or to set a very low price by PT Conch South Kalimantan Cement. The Commission Panel of Case No. 03/KPPU-L/2020 concluded in the Decision of ICC read out on January 15, 2021 that CONCH had committed selling at a loss in 2015 and had set very low prices in 2015–2019. Based on the facts in the hearings, the Commission Panel handed down a sentence to CONCH in the form of an administrative fine of IDR22,352,000,000 (twenty-two billion three hundred and fifty-two million rupiah).

CONCH then filed a remedy in the form of Objection to the Decision of ICC through a notice of objection dated February 3, 2021 to the Commercial Court at the Central Jakarta District Court.