Nippo Corporation Late Notification, ICC Fines IDR 1 Billion.

Friday, January 5, 2024

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Jakarta (5/12) – The Indonesia Competition Commission (ICC) imposed a fine on Nippo Corporation amounting to IDR 1,000,000,000 (one billion rupiah) for the late notification of its share acquisition transaction with PT Kadi Indonesia Manufaktur (PT KIM). The sanction was imposed by the Commission Panel at the Decision Reading Session of Case Number 16/KPPU-M/2023, led by Commissioner Chandra Setiawan as Chairman of the Commission Panel and accompanied by Commissioner Dinni Melanie and Commissioner Yudi Hidayat as Members of the Commission Panel, yesterday, December 4, 2023, at the ICC Office in Jakarta.

This case originated from an investigation into the alleged delay in notification of Nippo Corporation’s acquisition of 51 percent of the shares of PT Kadi Indonesia Manufaktur, which became effective on June 3, 2021 (based on the documents of the Letter of Acceptance of Notification of Amendment to the Articles of Association of PT Kadi Indonesia Manufaktur with Number AHU-AH.01.03-0346714 and the Letter of Acceptance of Notification of Amendment to Company Data with Number AHUAH.01.03-0346719). The share acquisition has resulted in Nippo Corporation becoming the majority and controlling shareholder of PT Kadi Indonesia Manufaktur; thus, it must be notified to ICC.

Taking into account ICC Regulation Number 3 of 2020 related to the Relaxation of Law Enforcement, which regulates the addition of time for calculating the notification obligation, the notification of the acquisition of KIM shares by Nippo Corporation to the Commission is adjusted, which originally should have been made no later than 30 (thirty) working days, namely July 14, 2021, to no later than 60 (sixty) working days from the juridically effective date, namely August 30, 2021. However, the fact is that Nippo Corporation only submitted notification of the share acquisition on October 18, 2021. Therefore, Nippo Corporation is considered late in making the notification for 35 (thirty-five) business days from the time of the notification provision.

As a result of the delay, the Commission Panel decided that Nippo Corporation was legally and convincingly proven to have violated Article 29 of Law No. 5 Year 1999 and Article 5 of Government Regulation No. 57 Year 2010, and imposed a fine on Nippo Corporation in the amount of IDR 1,000,000,000 (one billion rupiah). Payment of the fine shall be paid to the State Treasury as a deposit of revenue from fines for violations in the field of business competition, no later than 30 (thirty) days after the decision has permanent legal force (inkracht).