Meeting Jokowi, KPPU Asked to Eradicate Cartels in 7 Commodities

Desi Angriani    •    Jumat, 13 Nov 2015 19:30 WIB
commodities
Meeting Jokowi, KPPU Asked to Eradicate Cartels in 7 Commodities
President Joko Widodo read his statement (Photo: Metro TV)

Metrotvnews.com, Jakarta: President Joko Widodo hopes that the Commission for Business Competitions Supervisory (KPPU) will focus on eradicating cartels in seven food commodities. The eradication is needed as it is related to the livelihood of the people.

The idea was conveyed by the Chairman of KPPU Muhammad Syarkawi Rauf following a meeting with President Jokowi at the State Palace, Presidential Palace Complex, Jalan Veteran, Central Jakarta, Friday (11/13/2015). The seven commodities mentioned are corn, salt, soy, chicken, sugar, rice and cattle.

"President expects KPPU to focus," Syarkawi mentioned.

According to Syarkawi, the lacking of the seven food commodity may result from two factors. First, decreasing production, and two, deliberateness. KPPU recorded that there are actors deliberately created rarity by withholding the supply to the market.

To reveal that issue, mentioned Syarkawi, his party should share responsibilities with the Ministry of Agriculture, as the rarity of production is within the ministry's jurisdiction.

"On the competition acts of reducing supply to the market, it is PKPU's business," he mentioned.

So far, KPPU has observed the cartel players in three commodities: cattle, rice and salt. For the imported cattle cartel, Syarkawi mentioned, KPPU has been dealing with it since last October. From the investigation, KPPU then tried 32 cattle fattening centers suspected of making the meat price soared. Two to three months ahead, the KPPU decision on the cattle cartel will be published.

On the rice cartel allegations, Syarkawi said they are still being monitored as targeted by the government. KPPU conducts monitoring on 11 provinces that are the national rice production centers, among others, West Java, Central Java, South Sulawesi, North Sumatra, Lampung, Palembang and West Papua.

KPPU's findings are surprising, since there are five to seven big players in each provinces. "The big players are those determining the prices, as we continue to observe them," he mentioned.

Meanwhile on salt, KPPU found the salt cartel for industry, domestic consumption and the combination of both. Syarkawi said salt has become an important commodity for the pulp industry, pharmacy, glass, oil drilling and food.
 
(FJR)