TheJakartaPost
Please Update your browser
Your browser is out of date, and may not be compatible with our website. A list of the most popular web browsers can be found below.
Just click on the icons to get to the download page.
KPPU accuses Astra, Yamaha of price-fixing
Change Size
Business Competition Supervisory Commission (KPPU) head Muhammad Syarkawi Rauf speaks to reporters on Indonesia Stock Exchange (IDX) trading floor in Jakarta on July 21. (JP/Ivany Atina Arbi)
T
here are indications that two giant motorcycle manufacturers, PT Astra Honda Motor and PT Yamaha Indonesia Motor Manufacturing, have engaged in price-fixing in the scooter market, the Business Competition Supervisory Commission (KPPU) says.
KPPU head Muhammad Syarkawi Rauf stated that the anti-monopoly agency had compiled enough evidence, including documents and witness statements, showing that Yamaha and Astra had conspired to determine automatic scooter prices.
“One piece of evidence is a document indicating that the two companies exchanged emails to coordinate price adjustments,” he explained on Thursday in Jakarta.
Syarkawi claimed that a reasonable price for an automatic scooter was Rp 12.6 million (US$962) as the production cost was only Rp 7.5 million to Rp 8 million per unit. However, the actual market price was more than Rp 15 million.
“Determining a selling price that is far above a reasonable price can only be done by the monopolizing companies,” Syarkawi told journalists, adding that Astra and Yamaha controlled 67 percent and 29 percent of the automatic scooter market in the country, respectively.
The commission started on Wednesday a preliminary investigation by questioning Yamaha representatives. Further investigation will be conducted on July 26. (vny/ags)
