KPPU Conducts Trial on Alleged Partnership Violation between PT HIP and Koptan Amanah

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Palm oil plantation. Photo by: Sawit Fest 2021 / Bernadus Ritchard

PALMOILMAGAZINE, JAKARTA – On Thursday, February 15, 2024, the Komisi Pengawas Persaingan Usaha (KPPU) conducted its inaugural Commission Trial to examine allegations of violation under Chapter 35, Article (1) of Law Number 20/2008 concerning Partnership Implementation between PT Hardaya Inti Plantations (PT HIP) and Koperasi Tani Plasma (Koptan) Amanah.

The trial took place at the KPPU office in Jakarta, aiming to investigate PT HIP’s alleged dominance over Koptan Amanah in a palm oil plantation project through the nucleus-plasma system.

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The trial was led by Gopprera Panggabean as the Chairman of Commission Panel, together with Aru Armando and Budi Joyo Santoso as Members of Commission. The case started from the villagers’ report about land (plantation) mastery assumption by PT HIP in main – plasma implementation with Koptan Amanah.

PT HIP, the palm oil plantation company that started its business since 1995 in Regency of Buol, Central Sulawesi Province was assumed to master the plantations of Koptan Amanah. The violations reported were about the company was not transparent in plasma development cost calculation, fresh fruit bunch (FFB) management for plasma smallholders, was not different from the agreement, and there was nothing about memorandum of understanding that regulated about delivering responsibility in plasma management and cultivation for the plasma smallholders.

Also Read: Lawsuit Trial Reveals 50 Evidences: PT IAL Environmental Permit in Question

As Palmoilmagazine.com quoted from the official page of KPPU, the institution deliverd three written warnings for PT HIP by suggesting to improve the partnership system. But there was not realization by PT HIP. This forced KPPU to follow up the assumption violation through the commission panel court.

The trial would be for the next 30 days and could be prolonged for the next 30 days again. The trial would be on 29 February 2024 with the agenda, to deliver opinion from the presumed party. If it is proven to do violation, PT HIP would be fined up to Rp billion or order to revoke business permit.

KPPU emphasized its commitment to get good business competition to maintain fairness and welfare for every party involved in the industry. (T2)

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