VERTICAL INTEGRATION PRACTICE: THE CASE OF PT SOLUSI TRANSPORTASI INDONESIA AND PT TEKNOLOGI PENGANGKUTAN INDONESIA
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Abstract
Business actors often use vertical integration agreements as an instrument to take control of several business activities including the production process of certain goods and/or services and avoid uncertainty over the supply of raw materials to produce goods and/or services. By using vertical integration, a company will get benefits which are the efficiency of production costs so that the profits obtained by a company are greater. One of the examples of vertical integration agreement practice is the case of an affiliation between PT. Solusi Transportasi Indonesia (Grab Indonesia) and PT Teknologi Pengangkutan Indonesia (PT TPI). The agreement between Grab Indonesia and PT TPI give rise to allegations of violation of vertical integration of the agreement build by both parties, namely the element of production control in the form of discrimination against business actors competing with PT TPI which subsequently had a further impact on drivers who are not partners of PT TPI. This paper uses a normative juridical research method with a statutory approach, a case approach, and a conceptual approach. This paper discusses cases based on vertical integration theory and its development, then assesses the vertical integration agreement between Grab Indonesia and PT TPI.
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