Opinion on the Acquisition of PT Suprabari Mapanindo Mineral by PT Tuah Turangga Agung.

Wednesday, April 18, 2018

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Jakarta (18/4) – KPPU issued its Opinion on the shares acquisition of PT. Suprabari Mapanindo Mineral by PT. Tuah Turangga Agung on April 17, 2018. This share acquisition has complied with the provisions of Government Regulation Number 57 Year 2010 (PP 57 Year 2010).


PT Tuah Turangga Agung is a subsidiary of PT United Tractors Tbk and owns several coal mines in Indonesia through its subsidiary. The target company, PT Suprabari Mapanindo Mineral is a company engaged in coal mining, more specifically cooking coal type. PT Suprabari Mapanindo Mineral’s coal mine is located in the province of Central Kalimantan.


KPPU considered that this acquisition was a horizontal acquisition transaction, because both parties are equally engaged in coal mining. Based on Commission Regulation No. 03 of 2013 (Perkom No. 3/2013), if the acquisition is a horizontal acquisition then KPPU needs to conduct a post-acquisition concentration level. As many jurisdiction, KPPU Herfindahl-Hirschman index (HHI) method to calculate the market concentration.


Based on assessment, the concentration level for post-acquisition has HHI value of 295,71 points. Based on Perkom no. 3/2013, if the acquisition HHI is below 1,800 then there is no fear of monopolistic practices and unfair competition resulting from acquisitions. This is because the number of business actors and market share in the industry is still a lot enough so that the emergence of dominant business actors after the acquisition is not possible.


Based on the analysis, KPPU issued an Opinion that there were no allegations of monopolistic practices and or unfair business competition resulting from the acquisition of PT Suprabari Mapanindo Mineral by PT Tuah Turangga Agung.