The Jakarta Post
The National Economic Committee (KEN) filed on Thursday a recommendation to the Business Competition Supervisory Commission (KPPU) to take action on alleged practices of price fixing in the trade of key food commodities.
Hermanto Siregar, a member of the economic committee, said that based on the committee’s assessment, it found unhealthy levels competition in the trade of five staple foods — rice, sugar, soybeans, sugar and beef — caused by an oligopoly in the domestic market.
“We’ve observed that the distribution of the food commodities is oligopolistic, where a limited number of players can control volumes of supply and prices through artificial scarcity,” he told reporters at the antimonopoly agency’s office.
An oligopoly differs from a monopoly, in which only one company exerts control over most of a market. In an oligopoly, there are at least t...