Jakarta, June 11, 2025 – Indonesia’s antitrust watchdog, the Business Competition Supervisory Commission (KPPU), has imposed a Rp1 billion (approx. USD 62,000) fine on Compagnie Financière Michelin (CFM), a subsidiary of the French tire giant Michelin Group, for failing to notify its acquisition of Kalimantan-based rubber firm Royal Lestari Utama (RLU) within the legally mandated timeframe.
The penalty was handed down during a KPPU panel session on June 10, 2025, in Kalimantan, as part of Case No. 20/KPPU-M/2024. The session was presided over by Gopprera Panggabean, with commissioners Aru Armando and Budi Joyo Santoso also in attendance.
CFM’s acquisition of 2,971 RLU shares, valued at nearly USD 70 million, was legally finalized on July 27, 2022. However, Indonesian competition law requires companies whose combined assets or revenues exceed certain thresholds to notify KPPU of such transactions within 30 working days of legal effectiveness.
Despite technical discrepancies in system-generated dates, the notification was only deemed complete on September 12, 2022—two business days beyond the deadline of September 8. The delay, though brief, still constituted a violation of Article 29 of Law No. 5/1999 in conjunction with Government Regulation No. 57/2010, triggering the administrative fine.
RLU, the acquired company, is a leader in sustainable natural rubber production and a pilot initiative for Michelin’s eco-friendly and inclusive sourcing model in Sumatra and East Kalimantan.
CFM is required to pay the fine into the state treasury within 30 days once the ruling becomes legally binding (inkracht).
Source: https://kppu.go.id/wp-content/uploads/2025/06/Siaran-Pers-No.-037_KPPU-PR_VI_2025.pdf
