Monday, May 3, 2021

Tags :

Decision | M&A | ICC

Indonesia Competition Commission (ICC) imposed a sanction on Orix Corporation for delayed notification of the acquisition of PT Sinar Mitra Sepadan Finance. The Commission Council in its today’s Commission Council Hearing for the Reading out of Decision imposed a sanction in the form of fine of IDR1,000,000,000 (one billion rupiah) on Orix Corporation for such violation.

The case under Register Number 16/ KPPU-M/2020 had its origin from the pre-investigation conducted by ICC on the Alleged Violation of Article 29 of Law Number 5 Year 1999 in conjunction with (juncto) Article 5 of Government Regulation Number 57 Year 2010 committed by Orix Corporation (ORIX) in the share acquisition transaction of most of the shares of PT Sinar Mitra Sepadan Finance (SMS Finance). ORIX is a Japan based company engaged in the field of services, such as leasing, corporate financing, investment, industrial equipment, energy and the environment, as well as banking and insurance. Whilst SMS Finance is a national company engaged in financing, especially vehicles and multipurpose financing.

ICC found that the acquisition condycted by ORIX of SMS Finance came into effect on November 4, 2015, therefore, based on the provisions, a notification should be made to ICC by no later than December 15, 2015. However, based on the results of the hearing proceedings, evidence was found that Orix Corporation just made  the notification on December 1, 2019. There has been a delayed notification for 975 (nine hundred seventy-five) days.

Based on the mandatory notification provisions and various facts found in the hearings, the Commission Council decided that ORIX had been legally and convincingly proven to have violated Article 29 of Law No. 5 Year 1999 Jo. Article 5 of Government Regulation No. 57 Year 2010 and sentenced ORIX to pay for a fine of IDR1,000,000,000 (one billion rupiah) and remitted it to the state treasury by no later than 30 (thirty) days after the decision has had a permanent legal force (inkracht).