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    The PGN Gas Monopoly Trial Process is Still Running

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    BANDUNG - The Business Competition Supervisory Commission (KPPU) affirmed that the trial process of Case Number 09 / KPPU-L / 2016 regarding Alleged Violation of Article 17 of Law Number 5 Year 1999 related to Monopolistic Practices in Determining Industrial Gas Price in Medan, North Sumatera Area is still running. The anti-monopoly umpire has not yet decided on the handling of cases involving PT Perusahaan Gas Nusantara Tbk (PGN) as a reported party.

    Commissioner of KPPU Saidah Sakwan, explained that the trial of alleged gas monopoly done by PT PGN is still in the stage of extension of further investigation.

    "The process of proof continues in the trial, whether or not there is a monopoly in the gas distribution in North Sumatra is still being tested in court, the decision will be decided by the Commission Council," Saidah said in his official statement in Bandung on Saturday (9/9/2017)

    This alleged case of gas monopoly began to emerge after a complaint from the businessmen about the problem of industrial gas distribution in North Sumatra. The issue of gas distribution concerns the increasingly minimal supply or still far from the user needs, as well as the problem of high gas prices.

    The gas supply is distributed by PT PGN, a state-owned company that also has a gas pipeline network in North Sumatra. PGN obtained this natural energy from a number of gas fields in North Sumatra, and later gas supplies were also supplied from LNG gas from Papua and Sulawesi through the Arun-Belawan LNG Terminal.

    The complaints of gas users in North Sumatra was also followed up by KPPU. The Commission suspects PGN has violated Article 17 of Law Number 5/1999 which prohibits business actors from producing production which result in monopolistic practices. Acting as Commission Council namely, Prof. Dr. Ir. Tresna Priyana Soemardi, S.E., M.S. as chairman, and R. Kurnia Sya'ranie, S.H., M.H and Drs. Munrokhim Misanam, M.A., Ec., Ph.D as members of the assembly.

    Saidah said, the position of PT PGN as SME's has also been a consideration of his side in completing this case.

    "If this distribution is a government assignment, there must be a regulatory basis (monopoly by law), but if this mandate holds a monopoly practice it can still be subject to violations of the Business Competition Law," he explained.

    He added that based on preliminary investigations investigators have found a number of indications of alleged monopolistic practices in the distribution of industrial gas in North Sumatra. Among other things, PGN controls 100% of the market share of gas users so it is possible to take advantage of its dominant position, this state-owned company can also set the price of gas unilaterally even without the customer's consent, as well as the clause in the unbalanced contract of gas purchase agreement (PJBG) thus incriminating consumers.

    According to Saidah, these findings are being tested by the Commission Assembly in the trial process in the extension of further examination which will end on October 5, 2017 to prove the existence or absence of monopolistic practices. "The Commission Council in the examination and decision-making independent and can not be intervened by any party including other members of the Commission outside the Assembly," he concluded. (MAT)

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