Select Language:
The Indonesian Competition Commission has imposed a historic fine of IDR449 billion (approximately $27.4 billion USD) on three local subsidiaries of a major Chinese construction machinery company due to anti-competitive behavior. The fined companies include PT Sany Indonesia Machinery, which must pay IDR360 billion ($22.1 million USD); PT Sany Heavy Industry Indonesia, fined IDR57 billion ($3.5 million USD); and PT Sany Indonesia Heavy Equipment, with a penalty of IDR32 billion ($2 million USD). This information was relayed through an unofficial order from the competition authority dated August 6.
While the parent company, listed in Hong Kong, avoided direct penalties, it was instructed to alter its sales strategy. The case centers around a 2023 decision by the parent company to mandate two non-exclusive Indonesian resellers to exclusively buy trucks, heavy equipment, and spare parts from its three local subsidiaries. These subsidiaries also directly sold products to consumers, bypassing local distributorships.
Additionally, the company imposed more stringent payment terms on these resellers than previously agreed upon under a three-year procurement contract. As a result, the resellers failed to achieve their sales targets and lost access to the company’s products and spare parts.
Industry analysts warn that such hefty penalties should serve as a warning to all companies about the importance of fair competition. The competition authority emphasizes its commitment to cracking down on monopolistic and unfair business practices.
The company has a long-standing presence in Indonesia, where it launched its first overseas smart factory in March 2020 with an investment of approximately $27.8 million USD. The plant, capable of producing 3,000 units annually, mainly manufactures excavators ranging from 13 to 55 tons for Southeast Asian markets. Capacity expansion was finalized last year.
In June of the previous year, the company secured a groundbreaking order worth about $250.6 million USD from the Jhonlin Group, a leading mining enterprise in Indonesia. This deal represented one of the most expensive single purchases of excavators worldwide.
The company’s international expansion efforts extend beyond Indonesia. Last year, overseas sales revenue totaled approximately $6.8 billion USD, accounting for around 64% of total revenue—up from 61% the year before—highlighting a significant shift toward global markets.
ChatGPT
Perplexity
Gemini AI
Grok AI
