Indonesia's Business Competition Supervisory Commission (KPPU), the country's anti-monopoly agency, penalized Yamaha Indonesia Motor Manufacturing (YIMM) and Astra Honda Motor (AHM) for forming a cartel with the purpose of conducting price-fixing and curtailing the distribution of Yamaha and Honda motorcycle sales in Indonesia, specifically those motorcycles with an engine capacity of 110-125 cubic centimeters.
A KPPU tribunal decided that both companies have violated Law No. 5/1999 on the Ban on Monopolistic Practices and Unfair Business Competition by agreeing to set a price at a certain level, at the expense of the Indonesian consumer who are not able to purchase the above-mentioned motorcycles at competitive prices. The tribunal came to this conclusion after 120 days of research.
Yamaha Indonesia Motor Manufacturing was sentenced to a IDR 25 billion (approx. USD $1.9 million) fine, while Astra Honda Motor needs to pay IDR 22.5 billion (approx. USD $1.7 million) in fines. Yamaha's fine is higher fines because the company allegedly manipulated data during the hearing, while Astra was considered cooperative.
Gunadi Sindhuwinata, Chairman of the Indonesian Motorcycle Manufacturers Association (AISI), does not agree with the tribunal and said the verdict is "out of context" and not based on any fundamental evidence. Therefore, he is concerned that this verdict actually only damages the investment climate of Indonesia. Foreign investors could decide to invest in motorcycle plants (or related industries) in countries where they cannot suddenly be hindered by such rulings.
Yamaha Indonesia, part of Japan's Yamaha Group, said it did not conduct any price-fixing and therefore considers to appeal against the tribunal's ruling. Meanwhile, Astra Honda, jointly owned by Indonesian conglomerate Astra International and Japan's Honda Motor, was not immediately available to comment on the matter.