KPPU Raises Cooking Oil Matters to Law Enforcement Process

TEMPO.CO, Jakarta -The Business Competition Supervisory Commission (KPPU) has raised the matter cooking oil to law enforcement. The KPPU previously suspected that there was a cartel suspected of rising cooking oil prices some time ago.

“This time, we will enter or focus on the behavior of business actors in the cooking oil market,” said the Head of the Bureau of Public Relations and Cooperation. KPPU Deswin Nur when contacted on Saturday, January 29, 2022.

Deswin explains, the problem of scarcity, hoarding, potential kartel, and allegations of other business competition violations will be part of the KPPU’s investigation during the legal process. The Commission will collect evidence to determine next steps.

According to Deswin, the process law enforcement can last from three to six months. “In fact, the process can be extended. But we strive to produce results in a relatively short time,” he said.

KPPU previously saw that there was a cartel signal from the problem of skyrocketing cooking oil prices. The KPPU’s commissioner, Ukay Karyadi, suspects that large companies that control the domestic cooking oil market share set the price increase at the same time.

“The price of cooking oil in the market is relatively increased together after the increase in CPO prices (crude palm oil). This behavior can be interpreted as a signal whether this is a cartel because of prices, but this must be legally proven,” said Ukay, 20 January 2022.

Ukay explained that the cooking oil industry market in Indonesia tends to lead to an oligopoly structure. In data consentration ratio (CR) compiled by KPPU in 2019, four large industries seem to control more than 40 percent of the cooking oil market share in Indonesia.

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