Tuesday, December 29, 2020

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Indonesia Competition Commission (ICC) has summed up the results of the Initiative Case Research of the baby lobster export case which had been conducted from November 10, 2020. Based on the results of the inquiry, ICC found various alleged violations of Law No. 5/1999 in the freight forwarding services for the baby lobster exports and followed up the results of the inquiry to the Pre-investigation stage of the alleged violations of articles 17 and 24 of Law No. 5/1999 regarding Prohibition of Monopolistic Practices and Unfair Business Competition in the freight forwarding services for the shipment of the baby lobsters overseas.


Based on the Pre-investigation begun on December 7, 2020, there were several parties becoming Reported Parties in the alleged violations, namely PT Aero Citra Kargo as the Reported Party for alleged violation of article 17, and 3 (three) Reported Parties for alleged violation of article 24, namely PT Aero Citra Kargo, Head of the Implementers of the Due Diligence Team for Lobster Cultivation Fisheries Business Permits of the Ministry of Marine Affairs and Fisheries of the Republic of Indonesia, and Head of the Indonesian Lobster Entrepreneurs Association (PELOBI). The various forms of alleged violations include among other things monopolistic practice efforts perpetrated by the Reported Party, unreasonable price fixing, as well as barriers in the selection or use of the services of other freight forwarders for the shipment of the baby lobsters overseas.


The Pre-investigation process will be conducted within a maximum period of 60 (sixty) days to find at least 2 (two) instruments of proof, before it can proceed to the Dossier making stage and will then be Examined by the Commission Panel. Based on such violations, ICC can use the amount of fine as provided for by Law No. 11/2020 regarding Job Creation, which has revised the amount of fine in Law No. 5/1999, namely at least IDR1 billion, without a maximum amount of fine.