Proceedings of the 1st International Conference on Law, Social Science, Economics, and Education, ICLSSEE 2021, March 6th 2021, Jakarta, Indonesia

Research Article

Price Balance for the Good of Consumers and Business Actors

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  • @INPROCEEDINGS{10.4108/eai.6-3-2021.2305979,
        author={Darmadi  Durianto and Slamet  Riyadi and Faisal  Santiago},
        title={Price Balance for the Good of Consumers  and Business Actors},
        proceedings={Proceedings of the 1st International Conference on Law, Social Science, Economics, and Education, ICLSSEE  2021, March 6th 2021, Jakarta, Indonesia},
        publisher={EAI},
        proceedings_a={ICLSSEE},
        year={2021},
        month={5},
        keywords={cement price; business competition supervisory commission; national consumer protection agency; business competition law; consumer protection law},
        doi={10.4108/eai.6-3-2021.2305979}
    }
    
  • Darmadi Durianto
    Slamet Riyadi
    Faisal Santiago
    Year: 2021
    Price Balance for the Good of Consumers and Business Actors
    ICLSSEE
    EAI
    DOI: 10.4108/eai.6-3-2021.2305979
Darmadi Durianto1,*, Slamet Riyadi2, Faisal Santiago3
  • 1: Universitas Borobudur, Jakarta Utara-DKI Jakarta
  • 2: Universitas Borobudur, Bogor-Jawa Barat
  • 3: Universitas Borobudur, Jakarta Timur-DKI Jakarta
*Contact email: Darmadidurianto25@gmail.com

Abstract

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.