PALMOILMAGAZINE, JAKARTA – The supervision of palm oil partnerships by the Business Competition Supervisory Commission (Komisi Pengawas Persaingan Usaha/KPPU) is now reinforced by stricter regulations, aimed at ensuring continuous improvements in partnership practices while upholding principles of trust and mutual benefit.
Indra Sofian, Task Force Coordinator of the Directorate of Partnership Supervision at KPPU, welcomed the latest development with the introduction of the new Regulation of KPPU Number 2/2024 on Procedures for Supervision and Handling of Partnership Cases. This regulation is expected to strengthen law enforcement in Indonesia’s palm oil partnerships.
Indra emphasized that the regulation is not just a formality but a crucial step toward improving the transparency and accountability of palm oil partnerships. Previously, when partnership cases were examined, many palm oil companies would send employees to represent them. Under the new regulation, company management must personally attend and provide direct responses to KPPU’s inquiries.
“The presence of the management of company in the examination would not be formal only but also as the strong message that the company should be seriously handling the partnership. The company should not let and hand over every case to its workers in the fiel,” Indra said to Palmoilmagazine.com in the midst of August 2024.
The regulation emphasized that it would be significant to prevent than punishment. There would be some phases before a case would get into a trial. There would be written warning for 30 days to recover the relationship. Then there would be second written warning if there would be no improvement. If the company still neglect, the case would be taken to the court with the potential / much fine. But Indra emphasized the main spirit of the regulation is the changing action. (P2)
