KPPU scrutinizes suspected cement cartel

The Business Competition Supervisory Body (KPPU) has kicked off an investigation into an alleged cartel involving eight major cement producers across the country.

KPPU identified the companies as PT. SAI, PT. SP, PT. SB, PT. ITP, PT. HI, PT. SG, PT. ST, and PT. SBM.

Spokesman for the anti-monopoly body Ahmad Junaidi said Wednesday the investigation was based on the commission's monitoring of cement prices during 2009.

"Our early findings discovered irregularities in cement supplies," Junaidi told The Jakarta Post.

He cited cement producers had not operated at their full capacities while cement supplies in the market failed to meet to growing demands.

"As a result, cement prices jumped up to 100 percent," he added.

According to KPPU data, the eight cement producers produced only 35.4 million tons of cement or 62.26 percent of the total capacity of 56.86 million tons in 2008.

"Cement demands during the year reached 38.81 million tons, meaning that 2.68 million tons of cement was left uncovered by domestic producers," Junaidi explained.

The preliminary investigation will be completed on Feb. 24.

If more evidence is found in the initial investigation, the commission will conduct an advanced probe that will take 60 days before it issues a verdict. (bbs)