On 3 November, the Commission for Supervision of Business Competition (KKPU) has ruled that PT Carefour Indonesia violated the Anti Monopoly Law year 1999 when it acquired 79% share in local retail company PT. Alfa Retailindo in 2007.
KPPU claimed that the acquisition gave Carrefour a 58% share in the national retail market, therefore against said law. Carrefour was fined Rp 25 billion ($2.6 million) and ordered it to sell its shares in Alfa.
Carrefour rejected said ruling, arguing that its methodology was flawed. Carrefour's official cited an AC Nielsen survey that says the Alfa acquisition only raised Carrefour’s share of the retail market to 17%. He added that KPPU’s ruling was not right and could have an impact on the investment climate and legal certainty, which has been quite conducive in recent years. Due to which it has appealed the ruling to the South Jakarta District Court.
Meanwhile, CEO of the Carrefour Group in France Lars Olofsson has met with President Soesilo Bambang Yudoyono (SBY) on 14 December when SBY stopped in Paris on his way to the UN Climate Change Conference in Copenhagen. According to a director of PT Carrefour Indonesia, Olofsson has asked SBY about KPPU's ruling.
Chairman of KPPU Benny Pasaribu said that the meeting was improper because Carrefour is having a dispute with KPPU.
But SBY's spokesman Julian Pasha explained that SBY met Olofsson during a gathering with businessmen of the French Chamber of Commerce in which Carrefour is a member.
The above KPPU's ruling was questioned by a lawyer specializing in merger and acquisition who said that Carrefour's acquisition of Alfa was right because it has been approved by the Capital Market and Financial Institutions Supervisory Agency (Bapepam-LK) and the Indonesian Investment Coordinating Board (BKPM).
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Considering that the settlement of this case will consider the fact that Carrefour's acquisition of Alfa has previously been approved by two government agencies.
I also hope that the impact of said acquisition on the market would be re-examined once again so that the truth shall be known. That way, legal certainty can be preserved, and new investors would not hesitate to invest their money in Indonesia.
Image : Courtesy of Wikipedia.