Antimonopoly watchdog has hard task: Didik<\/p>\n
JAKARTA (JP): The newly-established anti-monopoly watchdog was
\nfacing a grave task of setting up sound business environment in
\nthe country given the fact that monopoly and other unsound
\nbusiness practices have been deeply rooted here, members of the
\nwatchdog said.<\/p>\n
\"Monopoly and other unsound business practices have been here
\nfor decades. Business people conduct their businesses using the
\nlaws of the jungle... while the government has done very little
\nto stop it,\" Didik Rachbini, one of the so-called Business
\nCompetition Control Commission (KPPU), told The Jakarta Post
\nSaturday.<\/p>\n
Didik also noted that the Commission might lack support from
\nthe government and the public in doing their job.<\/p>\n
\"So far, the government has been focusing on basic problems
\nlike unemployment and poverty eradication. Things like unfair
\nbusiness competition is only a secondary matter, not a major
\nconcern to government or public,\" he said.<\/p>\n
President Abdurrahman Wahid issued a decree on June 7 on the
\nestablishment of the KPPU and the appointment of eleven members
\nof the commission.<\/p>\n
The formation of the commission is based on the Antimonopoly
\nand Unfair Competition Law No. 5\/1999.<\/p>\n
The commission has the rights to investigate inappropriate
\nbusinesses who were suspected of doing unfair business practices
\nand imposing sanctions on them.<\/p>\n
The President will officially swear in eleven appointed
\ncommission members as soon as he returned from his overseas trip
\nthis week.<\/p>\n
The eleven KPPU members are economists Pande Radja Silalahi,
\nDidik Rachbini and Faisal Basri, businessman Soy Pardede, Bambang
\nPurnomo Adiwiyoto, former government official Nabiel Makarim,
\nformer members of the House of Representatives Tadjuddin Noersaid
\nSaid and Erwin Syahril, member of political party Syamsul Muarif,
\nmember of cooperatives Moch. Iqbal and government official
\nSutrisno Purnomo. They will serve on a five-year term.<\/p>\n
Major business players seem to welcome the presence of KPPU,
\nsaid commission member Soy Pardede, who is also an executive of
\nthe Indonesian Chambers of Trade and Commerce.<\/p>\n
\"Somehow, many business players are expecting KPPU's works
\nwill help create a better, fairer business opportunity,\" he said
\nover the weekend.<\/p>\n
Some major companies have asked the KPPU to assess whether
\ntheir businesses were against the provisions of the Antimonopoly
\nand Unfair Competition law, Soy said, declining to name the
\nfirms.<\/p>\n
KPPU is formed to control the implementation of provisions in
\nthe Antimonopoly and Unfair Competition Law, which was passed by
\nthe House of Representatives in February last year and ratified
\nby then President B.J. Habibie a month later.<\/p>\n
The law is the country's first legislation that directly deals
\nwith monopolies and other unfair business practices.<\/p>\n
The law prohibits, among others, an individual company from
\ncontrolling more than 50 percent of the domestic market, and two
\nor three companies from controlling a combined 75 percent of the
\nmarket. Market share is determined by sales value rather than
\nvolume.<\/p>\n
Under the law, which will be effective in September, the
\nindependent KPPU has the authority to monitor business agreements
\nand activities in the country.<\/p>\n
Soy said KPPU was also authorized to question entrepreneurs
\nover alleged improper business conducts and impose administration
\nsanctions on them or their companies if found guilty of
\npracticing monopoly and other unfair business operations.<\/p>\n
\"We can ban a person from holding a position in a company for
\nup to five years. We can also order a company to void a merger if
\nwe found the deal was leading the firm into monopoly,\" he said,
\nadding that foreign business entities are also liable to KPPU's
\ninvestigation.<\/p>\n
According to the law, individuals or companies found guilty of
\nviolating the law will face fines of between Rp 1 billion
\n(US$125,000) and Rp 100 billion and\/or jail terms of between
\nthree and six months. (cst)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/antimonopoly-watchdog-has-hard-task-didik-1447893297",
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