Jakarta – Having compiled enough evidence, the Business Competition Supervisory Commission (KPPU) is ready to summon 12 big corporations in its investigation into an alleged price-fixing conspiracy in the poultry industry.
The commission launched the investigation after receiving numerous reports about irregularities in the chicken-price rise. Chicken, according to Central Statistics Agency (BPS) data, is one of the top-five staple foods in Indonesia.
"We will start the preliminary sessions in the next two weeks [...]. We are preparing the letters of summons, which will be delivered to them soon," said KPPU head Muhammad Syarkawi Rauf as quoted by Tempo.co on Wednesday.
According to him, the large breeding companies control 90 percent of the chicken market. The companies are accused of creating oversupply in the market to put small breeders out of business. However, he refused to reveal the names of the 12 suspect companies.
Meanwhile, the Jakarta administration has decided to shorten the supply chains of some food commodities in the city to curb the recent fluctuations in food prices and inflation.
Jakarta Governor Basuki Tjahaja Purnama said the local government had shortened the supply chains of some commodities including cows, rice and chickens. State Logistics Agency (Bulog) will be involved in shortening the rice supply-chain.
"We have begun to enter the market and started buying directly from breeders," he said as quoted by Kontan.co.id, saying that the measures would both reduce and stabilize staple food prices in Jakarta. (ags)(+)