Choose watchdog members carefully: Kadin<\/p>\n
JAKARTA (JP): The Indonesian Chamber of Commerce and Industry
\n(Kadin) urged the government, on Thursday, to be selective in
\nchoosing members for the antimonopoly watchdog, the Business
\nCompetition Supervisory Commission.<\/p>\n
Kadin's vice chairman Soy M. Pardede said commission members
\nshould have integrity, be independent, impartial and be able to
\nwork effectively without bias.<\/p>\n
The effectiveness of the law will depend largely on the
\ntechnical competence, integrity and autonomy of commission
\nmembers, since the antimonopoly law still has a lot of loopholes.<\/p>\n
"There are many things that are still unclear which could lead
\nto loopholes being found and utilized by businessmen. Strict
\nsupervision and direction by the commission will help improve the
\nactual implementation of the law," he said.<\/p>\n
The antimonopoly and unfair competition law, passed by the
\nHouse of Representatives in February and ratified by President
\nB.J. Habibie on March 5, prohibits a company from holding more
\nthan 50 percent of a domestic market. Violators face fines of up
\nto Rp 100 billion (US$11.76 million) and jail terms of up to six
\nmonths.<\/p>\n
The enforcement of the law, which will become effective on
\nAug. 5, 2000, but will have a trial period earlier, will be
\noverseen by the commission, whose members will be appointed by
\nthe President following prior approval from the House.<\/p>\n
The commission will have the authority to evaluate business
\nagreements and activities in its search for monopolistic
\npractices, and to take action against violators.<\/p>\n
However, the law stipulates that a company will not be
\npenalized if the commission finds the company's market share was
\ngained through efficiency and the company does not use its
\ndominant position to restrict new entrants into the market.<\/p>\n
The ministry of industry and trade said earlier this week that
\nthe government would soon submit the names of the commission
\nmembers to the House for approval.<\/p>\n
"We expect the commission members will be approved by the
\nPresident in October at the latest, so that regulations for the
\nimplementation of the law can be prepared," ministry secretary-
\ngeneral Muchtar said.<\/p>\n
Soy said commission members should not be actively involved in
\nthe business sector so as to avoid any bias in the commission's
\ndecisions.<\/p>\n
"For example, members should give up their position in a
\ncompany while serving on the commission."<\/p>\n
Soy said the new antimonopoly law, despite its many
\nshortcomings, should be welcomed because it is badly needed to
\nensure fair competition in the market.<\/p>\n
"Although the law still has many loopholes it is still
\napplicable," he said.<\/p>\n
The consumer protection law, passed by the House in May, is
\nexpected to complement the antimonopoly law, he said.<\/p>\n
Soy said Kadin would hold a seminar on antimonopoly law and
\nconsumer protection law on Aug. 31 in Hotel Borobudur Jakarta, in
\norder to disseminate information regarding the two laws.<\/p>\n
"Many people, both businessmen and consumers, do not
\nunderstand the content of the two laws, which is vital for the
\nbusiness sector," he said.<\/p>\n
Kadin's head of public policy department Rudy Lengkong said
\nthe government should inform the community before implementing
\nthe law.<\/p>\n
"There is only six months left until the antimonopoly law will
\nbe partially enacted and seven months before the consumer
\nprotection law will be partially enacted. People should know of
\ntheir rights and obligations under these laws. Otherwise they
\nwill be useless," he said. (gis)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/choose-watchdog-members-carefully-kadin-1447893297",
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"sponsor": "Okusi Associates",
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