8 November, 2016
Following reports of alleged excessive pricing by freight forwarders between the Indonesian island of Batam and Singapore, the Indonesian competition authority (“KPPU”) opened an investigation into potential collusion between the freight forwarders.
The case is the latest in a string of enforcement actions around the world against alleged price- fixing by shipping companies and others in the shipping industry. For example, freight forwarders were fined by China’s National Development and Reform Commission for cartel activities in January this year.
The investigation will test the KPPU’s ability to gather evidence, despite its limited investigation powers under Indonesian law. It is expected that the KPPU will rely on economic evidence and comparison of shipping fees to establish a finding of collusion between the parties. In addition, the case provides an opportunity for the KPPU to collaborate with the Competition Commission of Singapore.
For further information, please contact:
Perdana Saputro, Widyawan & Partners
perdana.saputro@widyawanpartners.com
