Indonesian Cement Group denounces call for its disbandment

Indonesian Cement Group denounces call for its disbandment
Published: 20 August 2010

The Indonesia Cement Association (ASI) on Thursday denounced a recommendation by the Business Supervisory Commission that it be disbanded to avoid the possibility of price-fixing.

The recommendation came the day after the commission cleared eight cement producers of charges of collusion, but it said the association should be dissolved because of fears it could provide room for possible cartel practices.

Urip Timuryono, the ASI chief, said he was pleased the firms had been cleared but was confused by the KPPU’s order, saying his association had always avoided cartel practices.

The commission had launched a six-month investigation into claims that cement producers had been involved in price-fixing, resulting in losses for consumers and businesses.

It said there was no evidence the companies conspired to manipulate production volumes, distribution systems or the price of cement.

The cement makers probed were Semen Gresik, Indocement Tunggal Prakarsa, Holcim Indonesia, Semen Baturaja, LafargeCement Indonesia, Semen Tonasa, Semen Padang and Semen Bosowa Maros.