INTRODUCTION TO BUSINESS LAW

The Case of Dominant Position by PT. Sususegar

in Batam

Presented By
Andre Geovani

(B1024151001)

Faculty of Economy and Business

Tanjungpura University
Pontianak
2016

PREFACE

All praise be to God for His bless for giving the health and knowledge so
author is capable of completing the task of paper titled "The Case of Dominant
Position by PT. Sususegar in Batam" in order to fulfill the task subject of
Introduction to Business Law by Mr. Thadeus Yus, SH MPA.
This paper will explain about a case of unfair competition among
businesses which PT. Sususegar has dominant position in Batam. From the law, it
is categorized as the action against the law. So author have to analyze the case
using the law exist in Indonesia.
In the preparation of this task, not a few obstacles that author faced.
However, the author realized that fluency in the preparation of this material is
because the help, encouragement, and guidance from people around so that the
obstacles faced by author has been resolved.
The author hopes that this paper can provide a greater insight and
contribute ideas to readers, especially students from Tanjungpura University. The
author realizes that this paper still have many shortcomings and still far from
perfect. Therefore, author expect a comment from lecturer for the improvement of
this paper making in the future and expect criticism and suggestions from readers.

Pontianak, June 24 2016

Author

CONTENT LIST

PREFACE

CONTENT LIST

ii

CHAPTER I : CASE DESCRIPTION

A. Nature of the Case

B. Summary of the Case

CHAPTER II : CASE ANALYSIS

A. Case Analysis according to Business Law

B. Settlement

CHAPTER III : CONCLUSION

REFFERENCE

iii

CHAPTER I
CASE DESCRIPTION

A. Nature of the Case

Name of Case

: Dominant Position by PT. Sususegar toward PT.

Susumurni in Batam

Parties Involved

: 1. PT. Sususegar from Batam

2. PT. Susumurni from Medan

B. Summary of the Case

PT. Sususegar is the largest dairy farms in Batam with the capability to
supply all the needs of fresh milk in Batam which was sold for Rp.10.000/liter.
During this time, there is no significant complaints from consumers in Batam that
is very fond of fresh cow's milk and there is no substitution of fresh cow's milk.
PT. Susumurni is similar business with business areas in Medan and is trying to
expand the business in Batam by selling fresh cow's milk products at a price of
Rp.8.500/liter. Within two months, consumers in Batam that was the PT.
Sususegar consumers slowly start to consume the dairy products from PT.
Susumurni. Knowing PT. Susumurni began to take on the market, then PT.
Sususegar implement a new business strategy to sell products at a price of fresh
cow's milk IDR 6k/liter to attract the customers back.
The increase of fuel price made PT. Susumurni not able to compete on
price with PT. Sususegar, which ultimately makes PT. Susumurni leaving Batam
market and re-concentrate in Medan. Based on data KPPU we know that the price
of fresh cow milk production per liter may not be cheaper than Rp.6.500. One
months since PT. Susumurni Batam leaving the market, PT. Sususegar then raise
the price of fresh cow's milk for Rp.11.000/liter.

Actions that has been taken by PT. Sususegar can be categorized as loss
selling activity (predatory pricing). Loss selling activity is a form of sale or supply
of goods or services by selling at a loss in order to kill competitors. PT. Sususegar
who know the market began to turn to a competitor and then lower the sales price
below the price of production with the goal of pulling back consumers and turn
off the business of PT. Susumurni.

CHAPTER II
CASE ANALYSIS

A. Case Analysis According to Business Law

Based on an economic standpoint sell at a loss activities can be done by
setting unreasonable prices, which prices are lower than average variable costs. In
the case it is known that the production price not less than Rp.6.500/liter, while
PT. Sususegar sell their products at a price Rp.6.000/liter. it violates UndangUndang No. 5 Tahun 1999 Article 20 which states that:
"Businesses are prohibited from supplying goods or services by way of selling at a
loss or assign a very low price with the intent to remove or turn off the business
competitors in the relevant market which may result in monopolistic practices and
or unfair competition."
Therefore, activitiy that do sell at a loss by PT. Sususegar is prohibited by
rule of reason due to pricing below average on the one hand benefit consumers
because they can obtain milk at a very cheap price. However, on the other hand
the loss selling activity lethal PT. Susumurni opportunities to expand the business
in Batam.
PT. Sususegar in this case has a dominant position based on UndangUndang No. 5 Tahun 1999 Article 25-29. PT. Sususegar as a manufacturer that
has a dominant position in Batam market according to the provisions of Article 25
paragraph (2 ) which states:
Business actors have a dominant position as referred to paragraph (1) if:
a. One business actor or a group of business actors controls 50% (fifty percent) or
more of the market share of one type of goods or services; or
b. Two or three business actors or a group of business actors control 75% (seventy
five percent) or more market share of a certain type of goods or services.
PT. Sususegar market control in Batam before PT. Susumurni come amounted to
100% (one hundred percent), so that the elements of a dominant position are met.
3

Has a dominant position in the relevant market is the goal of every

business. Mastery of a dominant position in the competition law is not prohibited
throughout the business actors in achieving a dominant position on the relevant
market on its own merits in a fair manner. The concept of competition law is to
maintain healthy competition persists in the relevant market and encouraging
businesses into businesses that have a dominant position through healthy and
effective competition.
Undang-Undang No. 5 Tahun 1999 does not prohibit businesses
transform into large companies, this Act precisely encourage businesses to be able
to compete in the market. Competition is what spurred businesses to improve
efficiency and innovation to produce more quality products and competitive price
compared with product quality and the selling price of its competitors.
Competition is the thing that encourages business actor becoming the dominant
business actor.
PT. Sususegar action which then inhibits other businesses that could
potentially be a competitor is a right that is not justified by Undang-Undang No.
5 Tahun 1999 so PT. Sususegar has violated the rules. In Article 25 paragraph (1)
states that:
a. Sets out the terms of trade in order to prevent or deter consumers to obtain
goods or services that compete, in terms of both price and quality; or
b. Limiting the market and technology development; or
c. Inhibit other businesses which are potential competitors to enter the relevant
market.
Actions that has been taken PT. Sususegar who inhibit PT. Susumurni to
enter Batam market with sell at a loss of milk production meet the elements of a
violation of Article 25 paragraph (1), where the action is ultimately harmful to
consumers who do not have other options for obtaining milk fresh. Also these
actions have caused PT. Susumurni surrender from the Batam market because
unable to compete with a very low price as did by PT. Sususegar.

B. Settlement
Actions that has been taken by PT. Sususegar have fulfilled the elements
of Dominant Position (Article 25) which has resulted in monopolistic practices or
unfair competition practices, so that sanctions can be given by KPPU is according
to the rules in Article 48 paragraph (1), state that:
"Any violation of the provisions of Article 4, Article 9 to Article 14, Article 16 to
Article 19, Article 25, Article 27 and Article 28 imposed with a fine as minimum
Rp.25.000.000.000

(twenty

five

billion

rupiah)

and

the

maximum

Rp.100.000.000.000 (one hundred billion rupiah), or imprisonment for a fine

substitute for ever six (6) months.

CHAPTER III
CONCLUSION

PT. Sususegar sell their products at a price Rp.6.000/liter. Based on data

KPPU, we know that the price of fresh cow milk production per liter may not be
cheaper than Rp.6.500. This indicate a very low price given by PT. Sususegar. It
violates Undang-Undang No. 5 Tahun 1999 Article 20. Because, activitiy that
do sell at a loss by PT. Sususegar is prohibited by rule of reason due to pricing
below average on the one hand benefit consumers because they can obtain milk at
a very cheap price. However, on the other hand the loss selling activity lethal PT.
Susumurni opportunities to expand the business in Batam.
Based on Undang-Undang No. 5 Tahun 1999 Article 48 paragraph (1), PT.
Sususegar imposed with a fine as minimum Rp.25.000.000.000 (twenty five
billion rupiah) and the maximum Rp.100.000.000.000 (one hundred billion
rupiah), or imprisonment for a fine substitute for ever six (6) months.

REFFERENCE

http://fauziaulfa27.blogspot.co.id/2013/06/contoh-persaingan-tidak-sehat.html
http://michiko60.blogspot.co.id/2012/07/analisa-kasus-posisi-dominanhukum.html
en.wikipedia.org/wiki/Unfair_competition
UNDANG-UNDANG NO. 5 TAHUN 1999
www.kppu.go.id/docs/UU/UU_No.5.pdf