To Overcome Problems of Livestock KPPU and the Ministry of Agriculture Signed Joint Declaration.

Friday, December 30, 2016


Following up on the recommendations and considerations from Commision for the Supervision of Business Competition (KPPU) in the first half of 2016 against the government’s policy in the poultry sector, today (Tuesday, December 6, 2016) The Ministry of Agriculture has revised the Regulation of the Minister of Agriculture Number 26 Year 2016 concerning Supply, Distribution and Monitoring broiler. Regulation Revised aims to realize Broiler breeding business more conducive and synergistic covers the supply, distribution, reporting, and monitoring. KPPU welcomes the Minister of Agriculture’s regulations in an attempt to simultaneously reform in the field of poultry farms. DOC were related to distribution arrangements with the proportion of 50 percent of the KPPU, M. Syarkawi Rauf judging that what was done by the Minister of Agriculture to fix the problems of the poultry in this country deserves high appreciation. “The role of the state through policy instruments that do not conflict with applicable legislation is expected to fix the market failure” clearly Syarkawi. In the perspective of Law No. 5 of 1999 (concerning the Prohibition of Monopolistic Practices and Unfair Competition) The only exception to the act or agreement to be made to implement the legislation. In this context KPPU has provided input to the Minister of Agriculture to control the supply, distribution and monitoring of chicken must have a legal basis in accordance with the Act on it.


Syarkawi asserts that the legal basis for the government to intervene in the market by reducing or increasing the number of supply after the publication the Rule of Agriculture Ministry as the implementation of the legislation on it (the Act) be justified, by taking into account and are not used to commit excesive pricing. “So the indicators of the market will remain a concern that will be constantly monitored by KPPU in order to prevent the exploitation of consumers” close Syarkawi. In this occasion, KPPU and the Ministry of Agriculture signed the Declaration Escort and Assistance in Procurement, Distribution and Monitoring Broiler in accordance with the principle of fair competition between the Minister of Agriculture and KPPU which was witnessed by Deputy Representative Prevention Commission, Director General of Domestic Trade.