Business Competition Supervisory Commission (KPPU) chairman rauf syarkawi stated his commission to held further investigation cartel practiced by two big automotive companies PT. Yamaha Indonesia Motor Manufacturing and PT Astra Honda Motor. The two companies are allegedly involved in conspiracy of cartel, manipulating the price of scooter sale Rp 15 million each that is supposed to be sold below 12 million. Syarkawi explained that both companies violated the article 5 of no 5,1999 about motorcycle industry types of scooter cc 110-125. The investigator found out the alleged conspiracy of price agreement between the two companies. PT Yamaha and PT Honda are recognized to be the dominant producent around 97% of market segment. The investigators discovered the electronic document of deal prices of two companies beyond the supposed prices subject to the legal investigation.
KPPU will summon the expert, third party to obtain sufficient evidence on the alleged violation.
Syarkawi affirmed that the process of further investigation will be done fairly according to the principle of the legal law. It will be taken also openly by the commission so as to allow the public oversee the ongoing process. Meanwhile the chairman of Indonesian Motorcycle Industry Association (AISI) Gunadi Sindhuwinata was presented as the expert witness of a follow up investigation.
Gunadi claimed that AISI endorses healthy competition in motorcycle industry. He asserted that AISI never agrees to the price increase of motor cycles suitable with law no. 5 1999. Gunadi said that all the members of AISI have adopted the principles of AISI toward healhty competitiveness. According to him, the competitiveness of motor cycle industries are healhty and open for all as it's described through advertisement on mass media or television. But he also admitted that 5 of AISI members which are honda, yamaha, suzuki, kawasaki and TVS did make periodic price increases.
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