REVEALING THE ABUSE OF DOMINANT POSITION BY MOTORCYCLES SALES INDUSTRY IN INDONESIA

Abstract

Motorcycle company in Indonesia, namely Honda and Yamaha, violated the Law No. 5 of 1999
concerning the prohibition of monopoly and unfair business competition. Komisi Pengawas
Persaingan Usaha (The Business Competition Supervisory Commission) as the responsible
agency has issued the decision to resolve this case. However, on the other hand there is still
alleged violation towards the dominant position abuse. Responding to the allegation, this study
aims to analyze the accuracy of the decision which is given by the Business Competition
Supervisory Commission in cases involving automatic scooter type motorcycle. The result of
this study was the two companies not only violated Article 5 paragraph (1) of Law no. 5 of
1999 as decided by the Business Competition Supervisory Commission, but also allegedly
violated the article 25 of Law No. 5 of 1999 related to the abuse of the dominant position in
the price-fixing agreement which has been made by the automatic motorcycle companies of
Honda and Yamaha.