Roosdiono & Partners wins the Chicken cartel case against KPPU at District Court Stage

18
December
2017

Roosdiono & Partners has represented PT Cibadak Indah Sari Farm (CISF) in a competition law dispute against the Indonesian Business Competition Supervisory Commission (KPPU) regarding  cartel allegations. In this case, CISF is one of the 12 (chicken breeding farms) companies, including PT Charoen Pokphand Indonesia Tbk, PT Japfa Comfeed Indonesia, PT Malindo, PT CJ-PIA, PT Taat Indah Bersinar, PT Hybro Indonesia, PT Expravet Nasuba, PT Wonokoyo Jaya, CV Missouri, PT Reza Perkasa, and PT Satwa Borneo Jaya, were punished and fined by KPPU in 2016 with a total of Rp 119.67 billion (US$9.16 million). KPPU has given a verdict in its Decision No. 02/KPPU-I/2016 that the 12 companies have conducted a cartel violating Law No. 5 of 1999 by jointly and prematurely cutting 2 million of Parent Stock (PS) chickens in order to reduce the supply and increase the price of live bird chicken in the market.

The KPPU decision has been overturned by the West Jakarta District Court with Case No. 01/Pdt.Sus-KPPU/2017/PN.Jkt.Bar as the Judges found the cutting of PS was ordered by the Directorate General of Livestock and Animal Health under Ministry of Agriculture in order to combat the oversupply of live birds in the market, which have adversely affected the small chicken breeders. Hence, the Judges have rejected the cartel allegations.