Pertamina wins case at KPPU

The Business Competition Supervisory Committee (KPPU) said there was no proof that state owned oil and gas company PT Pertamina, PT Banten Inti Gasindo and PT Isma Asia Indotama had violated the Law No. 5/1999 on prohibition of monopoly and unhealthy business practices.

KPPU?s chief of panel of judges Mohammad Iqbal said it was proved that Pertamina has set equal conditions for doing business with it.

Earlier, the three companies were reported to the KPPU on charges of discriminating against PT Igas Utama in distribution of gas in the areas of Cibitung and Cilegon. Pertamina stopped its gas supplies to PT Igas last year, citing that the latter didn?t fulfill its obligations as per the agreement signed by both parties on Aug. 13, 2004.

Iqbal also said PT Isma Indotama and Banten Inti Gasindo didn?t do anything either jointly or separately that prevented PT Igas from doing business in Cibitung and Cilegon. Furthermore, Pertamina is not a competitor to PT Igas in the areas.

Pertamina set different gas prices for the three companies based on economic calculations rather than discriminatory reason. It has also provided less amount of gas to PT Igas commensurate with the payment made by the firm. (godang)