Competition Commission to fine Yamaha and Honda

JAKARTA. The Commission for the Supervision of Business Competition (KPPU) found that PT Yamaha Motor Indonesia Manufacturing and PT Astra Honda Motor involved in the price arrangement of automatic transmission motor cycle.

Yamaha and Honda would be imposed fines of Rp 25 billion and Rp 22.5 billion, respectively. Yamaha and Honda were legally and convincingly found to have violated article 5 Law No 1/1999 on the Prohibition of Monopoly and Unhealthy Competition,” said Tresna Priyana Soemardi, Chairman of Commissioner Council in his verdict, Monday (20/2).

Tresna said that the decision was made based on the evidence of two electronic mails of President Director of Yamaha Indonesia Yoichiro Kojima to the internal team of Yamaha in 2014. The emails mentioned that Yamaha would have to follow the price rise of Honda. Previously, the leaderships of Yamaha and Honda had met on the golf field.

The verdict has prolonged the list of corporations convicted by the KPPU. In September 2016, KPPU imposed a total of Rp 119.67 billion fines to 12 livestock companies.

The verdict has sparked various reactions. General Manager Corporate Secretary and Legal of Honda Andi Hartanto said, the verdict will create unconducive condition for business certainty in Indonesia. “We will appeal to the district court,” he said.

Chairman of Public Policy of Indonesian Employers Association (Apindo) Danang Girindrawardana etsimates, KPPU was supposed to maintain the conducive condition by giving early warning after detected the unhealthy competition, and filing the case to the court.

Chairman of KPPU Syarkawi Rauf denied that accusation of destructing the investment climate by issuing verdict, which is unsupportive decision. Instead, KPPU has provided law certainty. “After all, the cases, which have been brought to the court, have involved the companies that have violated the rules.

Last year, KPPU filed 24 cases of unhealthy business competition to the court. However, as of this month, the court has processed only nine cases.

(Muhammad Farid/Translator)