Price Balance for the Good of Consumers and Business Actors

Building a house relies on the availability of raw materials, among which is cement. Consumers in Indonesia usually consider the price in choosing cement. A slight difference in price of one sack means a lot of multipliers. The recent trial at the Business Competition Supervisory Commission sentenced PT Conch South Kalimantan Cement (CONCH) to guilty of allegedly selling cement at under-market prices. Evidences include a financial report on CONCH’s lost money and the removal of other brands from the market in a region. The KPPU commission panel judged CONCH to be selling losses to get rid of competitors. On the other hand, the cheap selling by CONCH had benefitted consumers. However, after CONCH was deemed guilty and fined, CONCH would sell cement at above its usual price or according to market standards. This of course affects consumers. The purpose of this research is to find out the root causes of the KPPU's decision on CONCH and the impact of this decision on consumers. Our research aims to provide suggestions so that the KPPU's decision will not affect consumers. Thus, it is necessary to regulate a system without predatory pricing or selling price determination by producers that is burdensome to consumers.