Chronology of Grab Case Up to IDR 30 Billion Fine by KPPU

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Jakarta, CNN Indonesia –

Business Competition Supervisory Commission (KPPU) to sentence fine Rp30 billion to PT Solusi Transportasi Indonesia (Grab) and PT Telekomunikasi Indonesia (TPI) of Rp19 billion.

The sentence is related to violations of Article 14 and Article 19 of Law Number 5 Year 1999 concerning Prohibition of Monopolistic Practices and Unfair Business Competition.

This case began to be investigated by KPPU last year. KPPU sees indications of unfair business competition over the cooperation between Grab and TPI. Grab was initially suspected of discriminating against driver partners who were not affiliated with TPI.

KPPU considers that Grab has given exclusive treatment to the driver partners who are under the auspices of TPI. The trial began in October 2019.

The Grab and TPI cases are registered with KPPU with case number 13 / KPPU-I / 2019. KPPU accused Indonesian Grab and TPI of violating Article 14, Article 15 Paragraph 2, and Article 19 Letter D of Law Number 5 of 1999 concerning Business Competition.

Article 14 of the Business Competition Law states: business actors are prohibited from making agreements with other business actors aimed at mastering the production of a number of products included in a series of production of certain goods and or services in which each series of production is the result of processing or further processing, both in one direct series or indirectly, which may result in unfair business competition and or be detrimental to the community.

Then, Article 15 Paragraph 2 of the Business Competition Law reads: business actors are prohibited from entering into agreements with other parties that contain requirements that the party receiving certain goods and or services must be willing to buy goods and or other services from business suppliers.

Then, Article 19 Letter D of the Business Competition Law states: business actors are prohibited from carrying out one or several activities, either alone or with other business actors, which may result in monopolistic practices and or unfair business competition in the form of discriminating against certain business actors.

Grab Attorney Hotman Paris Hutapea stated from the start that the cooperation between Grab and TPI did not harm the community. Grab treats all of its driving partners, both those who are affiliated with TPI and non TPI, with the same system.

Grab provides a classification of ratings based on the personal performance of the driver. The company has three driver performance criteria, namely elite plus, elite, and silver.

“There is no discrimination, if people are free to choose and they are not hampered from doing business,” he said, quoted Friday (3/7).

This case continues. Trials were held in Jakarta and Medan. Then, the final decision was issued by KPPU on Thursday (2/7) last night. Both must pay fines totaling Rp.49 billion.

Not accepting, Hotman said the KPPU’s decision would raise big questions from investors about the business climate in Indonesia. The problem is, the institution is considered to punish Grab and TPI as foreign investors without a clear legal basis and is not in accordance with the findings of the trial legal facts.

“We ask President Joko Widodo’s attention and supervision of the KPPU institution. Foreign investors will lose interest in investing in Indonesia,” explained Hotman.

In addition, Grab and TPI will not remain silent with KPPU’s decision. Both of them will file an objection to the district court within the period stipulated in the legislation.

[Gambas:Video CNN]

(Au / BIR)



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