KPPU Examined Two Distributors as Witnesses in Palm Cooking Oil Case

KPPU Examined Two Distributors as Witnesses in Palm Cooking Oil Case

InfoSAWIT, JAKARTA – Komisi Pengawas Persaingan Usaha (KPPU) examined two witnesses from the defendants online, Thursday (19/1/2023) at the office of KPPU in Jakarta. They were PT Cahaya Garuda Abadi, the grocery owner of e-commerce and Business to Business (B2B) ULA application; and PT Sari Agrotama Persada (PT SATP), Wilmar’s product distributor within marketing regions in Indonesia.

The first witness, PT Cahaya Garuda Abadi explained that the company organized every distribution and supply chain for micro, small, and medium business (MSMB) or small retailer through ULA application. Palm cooking oil is one commodity sold in the application. The purchase through ULA application can be in big or small numbers for groceries or shops.

There are many brands of palm cooking oil sold in the application, such as, Filma, Kunci Mas, Tropical, Fraiswell, and Hemat. The regions to sell such products covered Malang, Surabaya, Bandung, dan Semarang. “The company which was established in 2019 sold to Surabaya the most,” the company wrote as in the official statement to KPPU, as what InfoSAWIT got, Thursday (19/2021).

The witness (PT Cahaya Garuda Abadi) thought, ULA got the supply from PT Smart Tbk that sent to 4 (four) storages in each region within cash before delivery (CBD) system. In October – December 2021, ULA did not deny that palm cooking oil got more expensive, rare to be found. The information was told and delivered by palm cooking oil producer and distributors. In the court, data of purchase order (OD) were also delivered by PT Smart Tbk., for ULA needed it.

The data showed that in February 2022, PO was high that reached 140.000 cartons and PT Smart Tbk could fulfill 92% or 128.578 cartons. The increasing PO happened for the increasing demands in the period. ULA confirmed that there was no issue to get supply from PT Smart Tbk and there was no decreasing level of service from PT Smart Tbk to supply palm cooking oil in October 2021 to May 2022.

The second witness (PT Sari Agrotama Persada) mentioned that palm cooking oil distribution was in premium and simple packages. The company distributed many brands, such as, Sania, Fortune, Siip, Sovia, Kamil, Mahkota, Bukit Zaitun, and Ol’Eis. The segment to sell premium packages were modern retailers, and simple retailer in traditional markets.

The witness also explained, PO mechanism should be from producer to PT Sari Agrotama Persada. The company would establish PO to the producers, then the producers made production plan. After the products were produced, the company arranged delivery to Distributor Warehouse (D2). The delivery process of PT Sari Agrotama Persada to D2 would be about 2 to 3 days. It depends on where D2 is. the selling composition of PT Sari Agrotama Persada was 60% for general trade and 40% for modern trade.

The witness also told when the highest retail price took place, PT Sari Agrotama Persada got complaint from D2 that the products were not available while there were high demands. The factory could not fulfill it. In January to March 2022, there was no additional D2. The witness also mentioned, selling price in D2 was their own policy but PT Sari Agrotama Persada recommended its own price.

The witness also revealed that when highest retail price took place, there was no additional D2 but after highest retail price was over, ten distributors resigned. It happened for there was so substitution to pay the claim and even until now. The presence of Minyakita also directly delivered impact. The disturbed cashflow and unprofitable business made many D2 resigned.

In the court, the witness mentioned, anyone could be D2 but it would be noticed based on the network and financial capability. The witness mentioned, PT Sari Agrotama Persada did maintain that D2 should not take big profits. (T2)