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KPPU continues investigation into XL, Indosat for alleged cartel behavior
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A technician from telecommunications operator Indosat Ooredoo carries out maintenance work on one of the company’s base transceiver stations (BTS) in Jakarta. (JP/Ricky Yudhistira)
T
he Business Competition Supervisory Commission (KPPU) will continue its investigation into the alleged cartel practices of XL Axiata and Indosat Ooredoo, refuting the companies’ protestations of of innocence.
Both companies denied that their joint venture (JV), called the One Indonesia Synergy (OIS), was a cartel, and noted that the KPPU had been consulted prior to the formation of the OIS.
XL Axiata vice president for corporate communications Turina Farouk said the KPPU had even sent an official letter in March saying that the OIS was not of any legal interest to the KPPU.
“The establishment of the OIS is not a legal object of the KPPU, as stipulated in the 1999 Anti-Monopoly Law,” Turina told The Jakarta Post on Wednesday in Jakarta.
Indosat Ooredoo head of corporate communications Deva Rachman confirmed the existence of the letter.
Responding to this, KPPU head Syarkawi Rauf said that the context of the commission’s statement was different from what the anti-monopoly body was now trying to investigate.
At that time, the consultation was related to whether they needed to notify the KPPU regarding the establishment of the JV.
“We responded and said that there was no obligation to notify the KPPU in relation to mergers and acquisitions. However, if there is the possibility of cartel-like practices in the formation of a JV, then the KPPU can take legal action,” he said on the sidelines of a seminar in Jakarta.
The anti-monopoly agency is currently exploring XL and Indosat’s clarification and may summon the two companies in the future to gather more information. (win/ags)
