PALMOILMAGAZINE, JAKARTA – The Business Competition Supervisory Commission (Komisi Pengawas Persaingan Usaha/KPPU) has imposed a sanction of Rp 1,000,000,000 (one billion rupiah) on PT Hardaya Inti Plantations (PT HIP) for violating a partnership agreement with the Koperasi Tani Plasma Amanah (Koptan Amanah) in the palm oil sector in Buol Regency, Central Sulawesi.
The verdict was delivered during a court session for case number 02/KPPU-K/2023, presided over by Gopprera Panggabean as the Chairman of the Court, with Aru Armando and Budi Joyo as members of the Court, on July 9, 2024, at the KPPU office in Jakarta.
The case involved PT HIP, a palm oil plantation company established in 1995, and Koptan Amanah, its plasma partner. PT HIP was accused of dominating the partnership, including a lack of transparency in developing plasma plantations and their associated costs, as well as discrepancies in the sale of fresh fruit bunches (FFB) that did not comply with government regulations.
Also Read: KPPU Conducts Trial on Alleged Partnership Violation between PT HIP and Koptan Amanah
“One mastery in PT HIP was that there was no clause to get cooperation agreement about the obligation to report every responsibility about plasma plantation cultivation to Koptan Amanah during the partnership took place,” Head of Secretary of KPPU, Akhmad Muhari said, as in the official statement to beige-heron-208544.hostingersite.com, Thursday (11/7/2024).
KPPU delivered three written warnings to improve partnership agreement to PT HIP during the preliminary examination. But the order to improve the agreement of cooperation was not conducted by PT HIP and KPPU should follow up the case to the further examination.
In the investigation, it was revealed that PT HIP did not fulfill its obligation to conduct addendum of partnership agreement about expanding the plantations to be developed and make additional clause about the percentage of remaining business that Koptan Amanah should get from FFB trade.
“Besides, PT HIP did not manage to improve the debt of Koptan Amanah transparently and when to return freehold title of the members of the cooperation on their debts to PT HIP. The debts reached Rp 8.800.000.000 (eight point eighty hundred million) with the bails, 877 freehold titles that should be returned to the members of Koptan Amanah,” Akhmad Muhari said.
Based on the facts in the court, Commission Assembly sentenced that PT HIP was proven guilty that broke Chapter 35 paragraph (1) Laws Number 20 / 2008 in the partnership implementation with Koptan Amanah. The Court also ordered PT HIP to, the first, conduct addendum of partnership agreement that related to about 1.123,74 hectares until for the next four months after Regent of Buol would publish the decision of candidate of smallholders and candidates of locations.
The second, the company should get addendum of partnership agreement that should consist of the obligation clause to report and be responsible on plasma plantation cultivation and management for the plasma smallholders in Koptan Amanah in phase, for 60 work days, the longest, since the decision is in incrach.
The third, the company should conduct investment credit agreement Number SBDC.MKS/024/PK-KI/2008 about debt solution that would be turned from Bank Mandiri to PT HIP. The fourth should conduct general audit on the financial report of Koptan Amanah in 2008 to 2023 in one month only. The fifth should deliver the latest data about smallholders’ candidate and location candidate to the regent of Buol and should be copied to KPPU, not later than 14 days after the decision is incrach.
KPPU also mentioned, PT HIP would get one million rupiah – sanction and should be paid 30 days after the decision is incrach. (P3)
