ICC Imposes A Fine of IDR2 Billion on PT. Hok Tong for Delayed Notification of The Acquisition of Three Companies.

Friday, December 2, 2022

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Palembang (8/11) – Indonesia Competition Commission (ICC) imposed a sanction in the form of fine on PT. Hok Tong amounting to IDR2 billion for delayed notification of the acquisition transactions of three companies, namely PT Pulau Bintan Djaya, PT Sumber Djantin, and PT Sumber Alam. The sanction was pronounced at the Panel Hearing for the Reading Out of Decision on Case No.11/KPPU-M/2022 on Alleged Delayed Notification of the Acquisition of Shares of PT Pulau Bintan Djaya, PT Sumber Djantin, and PT Sumber Alam by PT Hok Tong, in Palembang, South Sumatra today.

This case was initiated by a pre-investigation of delayed notification of the acquisition of shares conducted by PT. Hok Tong (Reported Party) for the majority of the shares of several companies. The acquisition of 80% of the shares of PT. Pulau Bintan Djaya was conducted on February 27, 2018, while the acquisition of 99% of the shares of PT Sumber Djantin and 99.01% of the shares of PT Sumber Alam was conducted on April 20, 2018. Such various transactions have resulted in the transfer of control over the three companies to the Reported Party. For your information, PT Hok Tong is a manufacturer of rubber products, especially crumb rubber producer and SIR (Standard Indonesia Rubber) exporter based in Palembang, South Sumatra. Meanwhile, the acquired companies also engage in the area of rubber product (including crumb rubber) processing and manufacturing.

The Commission Panel is of the opinion that notification of the acquisition of the shares of the three companies by the Reported Party to the Commission, which was actually delivered on August 2, 2021, should have been delivered on April 13, 2018 and June 25, 2018 at the latest. This has proved that the notification made by the Reported Party has exceeded 30 (thirty) days after the date the share acquisition has been legally effective.

Based on the said fact, the Commission Panel decided that PT. Hok Tong is proven to have validly and convincingly violated Article 29 of Law No. 5 of 1999 juncto Article 5 of Government Regulation No. 57 of 2010, and imposed a sanction in the form of fine of IDR2 billion which must be paid to the State Treasury as a payment of revenues deriving from fines for violations in the competition sector. The payment for the fine must be made by no later than 30 (thirty) days since the Decision has had a permanent legal force (inkracht).