German expert defends antimonopoly law<\/p>\n
JAKARTA (JP): A German expert, who helped draft the country's
\nnewly introduced antimonopoly law, denied on Thursday allegations
\nthat the law was aimed at harming the development of successful
\nIndonesian enterprises.<\/p>\n
Antimonopoly expert Prof. Kartte said people believed the law
\nwould impede the growth of Indonesia's successful enterprises due
\nto a misleading perception of the bill's clause on a 50 percent
\nmarket share limit.<\/p>\n
\"It is not true that the new Indonesian antimonopoly law
\nprohibits a 50 percent market share,\" Kartte said in his speech
\nat a seminar organized by German foundation Gesselschaft fuer
\nTechnischen Zussammenarbeit in Jakarta.<\/p>\n
He criticized the executives of the Indonesian Chamber of
\nCommerce and Industry (Kadin) for repeatedly stating the law
\nwould impede the sound economic development of successful
\nIndonesian enterprises by limiting their market share to 50
\npercent.<\/p>\n
Kartte said the 50 percent market share limit was based on the
\nassumption that a market share of 50 percent would lead a company
\nto a market-dominating position.<\/p>\n
\"But this assumption can be refuted. The company may for
\nexample defend itself by saying that there are already powerful
\ncompetitors in the market, or the market is fully open to the
\nentrance of other strong competitors,\" Kartte said.<\/p>\n
He said that if a company could not refute the charges that it
\nwas dominating the market, the Business Competition Supervisory
\nCommission (KPPU), which supervises the implementation of the
\nlaw, could not immediately take measures against it.<\/p>\n
The KPPU may only take measures against it if there is reason
\nto believe the market-dominating position leads to monopolizing
\npractices or to unfair restrictions of competition, Kartte
\nfurther explained.<\/p>\n
The Antimonopoly and Unfair Competition Law 5\/1999, passed by
\nthe House of Representatives in February, is the country's first
\nlegislation to directly deal with monopolies and other unfair
\nbusiness practices.<\/p>\n
The law prohibits an individual company from holding more than
\n50 percent of the domestic market and two or three companies from
\nholding 75 percent of the market between them. A market share is
\ndetermined by sales value rather than volume.<\/p>\n
Business individuals or companies found guilty of violating
\nthe law will face fines between Rp 1 billion (US$133,333) and Rp
\n100 billion and jail terms between three and six months.<\/p>\n
Under the law, the independent KPPU has the authority to
\nmonitor business agreements and activities in the country. It
\nalso has the power to investigate deals if there are indications
\nof monopolistic practices.<\/p>\n
The House of Representatives will select the nine members of
\nthe commission based on a government proposal.<\/p>\n
Kartte called on the public to stop creating the wrong
\nimpression of the law.<\/p>\n
\"It is unfair to permanently create the wrong impression that
\nthe Indonesian government and parliament had lent their support
\nto elaborate a bill that might produce counterproductive economic
\nresults.<\/p>\n
\"As a matter of fact, the Indonesian antimonopoly law also
\nfully reflects the international standard with regard to this
\nspecific issue,\" he said.<\/p>\n
Kartte called on the government not to delay the
\nimplementation of the law, saying the transitional period until
\nSept. 5, 2000 was enough for companies to prepare themselves for
\nthe law.<\/p>\n
\"Indonesia being the fourth most populous country in the world
\nneeds an efficient competition law reflecting the standards of
\nother industrialized countries if it wants to enhance its role in
\ninternational trade,\" he said. (jsk)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/german-expert-defends-antimonopoly-law-1447893297",
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