Tougher competition in drinking water business

October 04, 2016, 04.32 PM  | Reporter: Umi Kulsum
Tougher competition in drinking water business


JAKARTA.The competition in bottled drinking water (AMDK) becomes tougher. Recently, the subsidiary of PT Mayora Indah, PT Tirta Fresindo Jaya, which is the producer of Le Minerale brand, on 1 October 2016 filed a legal notice to its competitor.

In this case, Tirta Fresindo Jaya found that the competitor, which claimed to represent PT Tirta Investama, has prohibited some stores to sell Le Minerale. As an information, PT Tirta Investama is the producer of bottled drinking water under the brand of Danone Aqua.

According to Marketing Director of PT Tirta Fresindo Jaya Riko Santoso, the competitor has threatened to down grade the status of a store, which sell Le Minerale brand, from star outlet (SO) to general wholesaler.

According to some information, Riko said that the cases happened in the area of Jabodetabek (Jakarta Greater Area) and West Java. In this case, PT Tirta Fresindo Jaya estimated that PT Tirta Investama is allegedly to conduct an attempt to monopolize and violate Law No 5/1999 on the Prohibition of Monopoly and Unhealthy Business Competition Practise.

Director of Corporate Communication of Aqua Group Arif Mujahidin said that the company will respond to the legal notice in serious manner, and in accordance with business regulations and ethics.

Arif said that Aqua has been operating in Indonesia for more than 40 years. During the time, Auqa has been respecting regulations on proper quality, security, and business ethic.

Since released in the first quarter of 2015, Le Minerale has secured 4.6% of domestic drinking water market share. Previously, Mayora has succeeded to market a beverage product under the brand of Teh Pucuk Harum (fragrant tea).

In order to solve this case, Chairman of Commission for the Supervision of Business Competition (KPPU) Muhammad Nawir has asked PT Tirta Fresindo Jaya reported the case to the commission.

Chairman of Indonesian Soft Drink Industry Association (Asrim) Triyono Prijosoesilo expects that two parties resolve the problem in a proper mean. “The healthy competition will enhance domestic food and beverage industries, and benefit national economic,” said Triyono. (Translator: Muhammad Farid)

 

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