Yamaha, Honda conspire to fix automatic scooter prices: KPPU

Makassar, S Sulawesi (ANTARA News) – The Council of the Business Competition Supervisory Commission (KPPU-RI) decided two giant motorcycle manufacturers, Indonesia Motor Manufacturing (YIMM) and Astra Honda Motor (AHM), have conspired to fix the selling prices of automatic scooters.

“What the council has decided at a hearing is based on evidence without any intervention from anybody including me in the capacity as the KKPU chief,” KPPU chief Muh Syarkawi Rauf said here on Monday.

The council decided that YIMM and AHM were lawfully and convincingly found violating Article 5 paragraph (1) of Law No. 5/1999 concerning ban on monopolistic practice and unsound business competition.

YIMM and AHM were also fined Rp25 billion and Rp22.5 billion each.

“At the hearing, KPPU decided to impose fines and administrative sanctions on them. The convicts must pay the fines to the state treasury as much as the amount decided by the council,” he said.

Syarkawi said both YIMM and AHM must pay the fines as per the councils decision to the state treasury and report evidence of the payments to KPPU.

KPPU member Saidah Sakwan said the actual price of an automatic scooter is Rp8.7 million. However, it is sold for Rp14-18 million in the market.

Source: Antara News