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An Indonesian authority found the venture had broken rules, reports say

Hutchison Port Holdings' (HPH) two joint-venture terminals in Jakarta have been ordered to close down after an Indonesian authority found it had violated anti-monopoly laws, according to media reports.

The anti-monopoly agency, the Commission for the Supervision of Business (KPPU), also found the terminals had used their domination to coerce  shipping lines into using their facilities, according to the Jakarta Post.

The KPPU's verdict was delivered on Monday after a six-month investigation.

The KPPU said Jakarta International Container Terminal (JICT) and Koja Container Terminal should terminate their operations after it found they controlled 75 per cent of the container market at Tanjung Priok through cross-shareholding, the report said.

Not only did the two terminals lay the ground for unfair competition for smaller port operators, they also hurt the interest of customers, KPPU member Erwin Syahril  was quoted as saying.

Mr Erwin could not be reached for comment yesterday.

JICT, which runs the Tanjung Priok  container terminal, is 51 per cent owned by Hutchison through its subsidiary Grosbeak, while the remaining stake is held by state-owned port operator Pelindo II.

Another Hutchison subsidiary, Ocean Terminal Petikemas, holds 48 per cent of Koja, with Pelindo holding the remaining shares.

Mr Erwin told the newspaper that both terminals had used their domination to pressure  businesses to use their services. 'The companies sent letters to customers forcing them to use the terminals operated by either JICT or Koja. Otherwise they will not be served at other container terminals abroad,' he said.

Maritime publication Lloyd's List quoted industry sources as saying the letters were sent out two years ago.

HPH issued a statement yesterday saying that operations were continuing at its two Jakarta terminals. 'In regards to the media reports, we have not received notification of any kind. Business is as usual at both Jakarta International Container Terminal and Koja Container Terminal,' it said.

According to the paper, KPPU also ordered the resignation of Wibowo S. Wirjawan  from his position as president of JICT and the Hutchison subsidiary which holds Koja. The KPPU has given JICT and Koja 14 days to respond to the verdict.



HPH terminals in Jakarta ordered to close down