On August 6, the Indonesian Competition Supervisory Commission (hereinafter referred to as “KPPU”) imposed a fine of 449 billion Indonesian rupiah (approximately RMB 197 million) on Sany Group's affiliate in Indonesia for violating competition laws. This ruling is not final.
According to information released by KPPU, the investigation was initiated based on a report filed by Sany Group's Indonesian agent. The KPPU investigation found that Sany International adjusted its sales policy in 2023, requiring two long-term Indonesian local non-exclusive dealers—PT Pusaka Bumi Transportasi and PT Gajah Utama International—to exclusively purchase trucks, heavy equipment, and spare parts through three Indonesian subsidiaries designated by Sany. Additionally, these subsidiaries were found to have bypassed local dealers and directly sold equipment to end customers. The KPPU pointed out that such practices violate Indonesian regulations requiring large enterprises to use local distribution channels.
The KPPU further stated that Sany treated these two local dealers as “end customers” and imposed stricter payment terms than before, which contradicted the three-year procurement plans previously committed to by the dealers. As a result, both dealers were unable to meet their targets and ultimately could not obtain Sany's products and spare parts.
The committee concluded that Sany's actions constituted unfair and discriminatory business practices, violating the law. Accordingly, KPPU investigators charged Sany with violating Articles 14 and 19 of Indonesia's Competition Law, which aim to prevent actions that may harm competitors or consumers.
According to media reports, in response to this ruling, Sany Group stated that the company is actively addressing the matter, including but not limited to through embassies and other bilateral channels, and has organized a legal team to file a lawsuit against the ruling.
KPPU spokesperson Deswin Nur stated that this is the highest fine ever imposed by the KPPU, even exceeding the previous fine imposed on Google. He said, “This should serve as a wake-up call for all companies, whether foreign or domestic investors. The KPPU will take seriously and sanction any company engaged in monopolistic or unfair business practices.”
The specific penalties are as follows: PT Sany Indonesia Machinery was fined 360 billion Indonesian rupiah, PT Sany Heavy Industry Indonesia was fined 57 billion Indonesian rupiah, and PT Sany Indonesia Heavy Equipment was fined 32 billion Indonesian rupiah. The parent company, Sany International Development, was not fined but was required to revise its sales plan.
Sany Group has been deeply rooted in the Indonesian market for many years and has made significant strategic investments. The first phase of its first overseas “lighthouse factory” (smart factory) in Indonesia began construction in March 2020, with a total investment of 200 million RMB. The factory primarily produces excavators ranging from 13 to 55 tons for the Southeast Asian market, with an annual designed production capacity of 3,000 units. The first excavator was successfully produced in August 2022. In 2024, the second phase of the factory's expansion project was successfully completed.
In June 2024, Sany Group also signed a record-breaking order with Indonesia's large-scale Jhonlin Group, involving 2,000 excavators, with an estimated order value of up to 1.8 billion yuan, marking the largest single excavator purchase contract known in the global construction machinery industry.
Regarding overseas marketing channels, Sany Group previously revealed that the group has established a clear overseas business strategy, actively promoting its unique channel model, and vigorously developing its overseas self-operated channel system. To date, the company has established an overseas market channel system covering over 400 overseas subsidiaries, joint ventures, and outstanding dealers.
Sany Group's overseas business has continued to grow strongly in recent years. Last year, Sany Heavy Industry's overseas market revenue reached 48.513 billion yuan, representing a year-on-year increase of 12.15%, with the proportion of total revenue rising to 63.98%, an increase of 3.49 percentage points year-on-year.
