Carrefour refuses to sell Alfa, files appeal

The Jakarta Post, Jakarta | Wed, 12/30/2009 9:19 PM

France-based retail giant Carrefour defies the anti-monopoly watchdog’s order to sell its Alfa subsidiary and instead files an appeal against the verdict to the court.

In November, the Business Competition Supervisory Commission (KPPU) found PT Carrefour Indonesia guilty of unfair business practices following the acquisition of the PT Alfa Retailindo.

The commission ordered the retail giant to sell all of its shares in Alfa worth Rp 675 billion (US$ 71.55 million) within a year and fined it Rp 25 billion.

Irawan Kadarman, Carrefour Indonesia's corporate communications director, told The Jakarta Post on Wednesday that the retail giant would not obey the orders for the moment until final legal decision in courts have been reached.

An appeal against the verdict had been filed to the South Jakarta District Court, Irawan said.

“We stay in our stance that Carrefour has in no way been conducting monopoly practices,” he said.

The first court hearing is scheduled on Jan. 11, 2010.

KPPU spokesman Ahmad Junaidi said that Carrefour’s rejection was lack of legal and fact basis.

“It’s their right to file appeal,” he said.

“We, however, are optimistic that the court will rule in favor of us. Our ruling is based on deep analysis and investigation which has resulted convincing evidence that Carrefour has conducted unfair business practices,” he said. (bbs)