PT LBS Confesses to Have Committed A Violation in The Sale of Cooking Oil in Sleman Regency and Applies For A Behavior Change to ICC.

Friday, December 2, 2022

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Yogyakarta (15/11) – PT Lestari Berkah Sejati (PT LBS) received a Report on Alleged Breach (LDP) that was submitted by Prosecuting Investigator of ICC and confessed the breach it had committed at the Commission Panel Hearing for Preliminary Examination of Case Number 14/KPPU-I/2022 on Alleged Violation of Article 15 paragraph (2) of Law Number 5 of 1999 with regard to the Sale of Bulk Cooking Oil in Sleman Regency, Special Region of Yogyakarta, held by ICC at ICC’s Regional Office VII of Yogyakarta today. PT LBS also filed an application for a behavior change to the Commission Panel in the second hearing.

For your information, ICC found the behavior of PT LBS in March 2022, imposing a condition for the purchase of Bulk Cooking Oil on its customers. The condition requires the purchase of other products of PT LBS for every purchase of Bulk Cooking Oil with a ratio of 1:1 (one to one) provided that the total minimum purchase in one transaction is IDR400,000 (four hundred thousand rupiah). ICC considers that PT LBS controlled nearly the entire supply of the bulk cooking oil in the relevant market in such period, resulting in a limited supply of bulk cooking oil in Sleman Regency and lack of option for many consumers/customers other than accepting the condition set by PT LBS. For such alleged violation, ICC started a Panel Hearing for the first Preliminary Examination on November 1, 2022, and gave an opportunity to PT LBS to make a behavior change following the reading our and/conveying of the LDP.

Based on the filing of the application for a behavior change made by PT LBS, the Commission Panel will set forth the commitment to such behavior change in a Behavior Change Integrity Pact to be signed by PT LBS. The pact will among other things contain the Reported Party’s statement confessing and accepting the LDP, statement of not conducting any anti-competitive behavior, and statement of reporting the implementation of the Behavior Change Integrity Pact. Under ICC Regulation Number 1 of 2019 on the Procedure for Handling Monopolistic Practice and Unfair Competition Cases, the implementation of the Behavioral Change Integrity Pact will be the object of the supervision by ICC for a maximum period of 60 (sixty) days. Following the completion of the period of supervision, the supervision will be ceased and will set forth in a Stipulation of the Commission Panel.