The KPPU in Indonesia has issued fines to seven cooking oil companies for limiting sales during a period of scarce supplies last year. The fines imposed were up to US$2.78 million per company.
Last year, KPPU initiated an investigation into the conduct of companies following a surge in cooking oil prices that led the Indonesian government to impose a temporary cap on retail prices and a three-week export ban on palm oil, which is commonly used as cooking oil in the country.
Indonesia holds the title of being the largest global producer of palm oil.
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According to the KPPU panel chaired by Dinni Melanie, seven out of 27 companies involved in the case were found guilty of restricting their cooking oil brand’s distribution during the retail price cap period in early 2022.
Seven companies, including Salim Ivomas Pratama – a subsidiary of Indofood Group, the biggest food company in Indonesia – and two units of Wilmar Group, were contacted by Reuters for comment but Salim Ivomas and Wilmar have yet to respond.
