ICC Issued A Decision on PT Pelindo Market Control Case at The Port of Yos Sudarso Ambon.

Jakarta (11/01) – The Indonesia Competition Commission (ICC) read out its decision regarding the alleged market domination by PT Pelabuhan Indonesia (Pelindo) (formerly PT Pelindo IV (Persero)) related to loading and unloading services at Yos Sudarso Pier in Ambon Harbor. In the decision number 29/KPPU- L/2020 regarding the alleged violation of Article 19 letters a and b of Law Number 5 of 1999, the Commission Panel decided that PT Pelindo (Persero) was not proven to violate the article.

The case began with a public report involving PT Pelindo (Persero) (formerly PT Pelindo IV (Persero)) as the reported party. In this case, the reported party is suspected of carrying out market control actions in loading and unloading services at Yos Sudarso Port, Ambon in the period of 2008 to 2018 through the transfer of all loading and unloading activities at Yos Sudarso Pier to a loading and unloading company (PBM) determined by the reported party. This action was carried out through various notification letters submitted by the reported party to several shipping companies, which did not have a binding basis and force for service users.

The reported party then submitted an application for upgrading the status of the port from a port that serves general goods into container terminal/TPK and received government approval on April 13, 2018. Meanwhile, according to regulations, those who can carry out loading and unloading activities at ports are port business entities (BUP) that obtain concessions, shipping companies, and loading and unloading companies (PBM). With the change of status, all container loading and unloading activities are fully handled by the reported unloading company. In this case, the reported party is suspected of refusing and/or preventing certain business actors from carrying out the same business activities in the relevant market as well as obstructing consumers and/or customers of competing business actors.

Through the hearing process, the Commission Panel assessed that there were efforts by the reported party to reject and/or prevent certain business actors from carrying out the same business activities in the relevant market and that there were efforts by the reported party to deter consumers and/or customers of their business competitors through various notification letters to the company. However, this effort has no impact on loading and unloading service users because they can still choose various loading and unloading company until the port status is changed to container terminal. Shipping companies are still carrying out business activities at the Port of Ambon. Taking into account these facts, the Commission Panel decided that the reported party was not proven to violate Article 19 letters a and b of Law Number 5 of 1999.

The Commission Panel also provide recommendations as below:

1. The Minister of State-Owned Enterprises of the Republic of Indonesia, as the supervisor of state/state-owned enterprises companies in Indonesia, toinstruct all SOEs to apply competition compliance program;
2. The Ministry of Transportation, the Ministry of SOEs, and the Port Authority to work together and pay attention to local business actors in the transitional ports, which status will be upgraded to container terminals, in order to createa healthy business climate;
3. The Minister of Transportation, as the regulator of sea transportation inIndonesia, should carry out more effective supervision regarding the operation of ports throughout Indonesia by taking into account the principles of fair business competition;
4. PT Pelindo (Persero) to apply competition compliance program so that their business activities will be align with the principles of fair business competition.