Company profile

Company Name : PT Indofood CBP Sukses Makmur Tbk. (1994)

Previous name:
Panganjaya Intikusuma
PT. Indofood Sukses Makmur Tbk
PT Gizindo Primanusantara
PT Indosentra Pelangi
PT Indobiskuit Mandiri Makmur
PT Ciptakemas Abadi (IDX: ICBP)
Type of company: producer of various types of food and beverages
Year founded : 1990
Place : Jakarta
Founder : Sudono Salim
Export Target : Australia, Asia and Europe
Cooperation : Nestle S.A, Switzerland

The case of Indomie which was banned from circulating in Taiwan because it was said to
contain preservatives harmful to humans and was withdrawn from circulation. these
substances are normally only allowed to be used to make cosmetics, the Taiwanese side
has decided to withdraw all types of Indomie products.

The Indomie case is now getting the attention of DPR members and Commission IX will
immediately summon the Head of BPOM Kustantinah. Commission IX of the House of
Representatives will ask for information about the Indomie case, this can happen, especially
from outsiders who know in advance of the presence of hazardous substances contained in
Indomie products. a cosmetic practitioner explained, the two substances contained in
Indomie are preservatives that make the product not rot quickly and last longer.

The head of BPOM Kustantinah also confirmed the presence of hazardous substances for
humans in the Indomie case. It's true that Indomie contains nipagin, but the chemical levels
in Indomie are still within reasonable limits and safe for consumption. However, if the nipagin
level exceeds the safe limit for consumption, it will be harmful to the body. Indomie products
have referred to international requirements regarding quality regulation, nutrition and food
product safety. While Taiwan is not a member of the Codec.

Problem Discussion

Indofood is a global company from Indonesia whose products are widely exported to other
countries. In Taiwan itself, the competition in the instant noodle business is very tight, in
addition to instant noodle products from other countries,

Besides the low price, Indomie also has several advantages compared to instant noodle
products from Taiwan, namely that it has various flavor variants offered to consumers.
By going through the stages of a series of tests, both national and international health
agencies that already have their own standards for the use of chemicals in food, Indomie is
declared to have passed the feasibility test for consumption.

From this fact, it is alleged that the withdrawal of Indomie products from the domestic market
of Taiwan was allegedly due to business competition alone, which they considered
detrimental to local producers. From this case, it can be seen that there is business
competition that violates business ethics.

Matters that were violated legally related to the case of violation of business ethics at the PT
Indofood company:
· Law number 8 of 1999 article 3 F
. Law number 8 of 1999 article 4 A
. Law number 8 of 1999 article 8

Solutions for violating business ethics in terms of consumer protection in the case
experienced by the P&G company:
Article 62 of the Law states that business actors who violate the provisions as referred to in
Article 8, Article 9, Article 10, Article 13 paragraph (2), Article 15, Article 17, paragraph (1)
letter a, letter b, letter c, letter e, paragraph (2), and Article 18 shall be sentenced to a
maximum imprisonment of 5 (five) years or a maximum fine of Rp. 2,000,000,000.00 (two
billion rupiah).
· Against criminal sanctions as referred to in article 62, additional penalties may be imposed,
in the form of:
1. confiscation of certain goods;
2. Announcement of judge's decision;
3. Payment of compensation;
4. Orders to stop certain activities that cause consumer losses;
5. The obligation to withdraw goods from circulation; or
6. Revocation of business license.