'Government should gradually limit monopolistic practices'<\/p>\n
JAKARTA (JP): The government will have no choice but to
\ngradually limit the monopolistic practices of some business
\ngroups in order to comply with its free trade commitment, says
\nEmil Salim, one of Indonesia's most senior economists.<\/p>\n
Emil, a former state minister for population and environment
\naffairs, termed monopolistic practices as one of the negative
\nconsequences of the government's past economic policies.<\/p>\n
The past policies should be corrected to minimize monopolistic
\npractices, he said on Saturday.<\/p>\n
The government's past economic policies, Emil said, not only
\nsucceeded in sustaining a high level of economic growth but also
\nbrought the country in line with middle-income nations.<\/p>\n
Despite the success, however, he said the government's past
\npolicies erred in creating business monopolies and cartel
\noperations.<\/p>\n
"The government possesses extremely strong powers to mend the
\nerrors and to gradually end any unfair practices," he said amid
\nrenewed debate concerning the monopolistic practices of some of
\nthe most influential business groups in the country.<\/p>\n
Much discussion has ensued since the State Minister for
\nInvestment Sanyoto Sastrowardoyo's recent remark on the
\ngovernment's plan to restrict the expansion of companies with
\ncontrol of more than 50 percent of the domestic market.<\/p>\n
Sanyoto later corrected his statement following a criticism
\nfrom Sudwikatmono, the key executive of the Salim Group which
\ndominates the markets of a number of commodities such as cement
\nand instant noodles.<\/p>\n
"A company, even with a market share of above 50 percent,
\nwill be still allowed to expand its plant as long as part of its
\nproducts are exported," he said after a meeting with
\nSudwikatmono.<\/p>\n
Emil said it would be difficult to halt the expansion of
\nconglomerates but estimated that the pressure to minimize
\nmonopolistic practices and cartel operations could not be avoided
\nin the future.<\/p>\n
He said that the government's commitment to comply with the
\nfree trade arrangement under the World Trade Organization and
\nregional cooperation would gradually limit monopolistic and
\ncartel operations.<\/p>\n
"If Indonesia, for instance, fails to adopt its free
\ncompetition commitment in order to protect certain business
\ngroups, it will be disputed by others," he said.<\/p>\n
Emil also explained that the government's future economic
\npolicies should also support small-scale businesses and
\ncooperatives. (hen)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/government-should-gradually-limit-monopolistic-practices-1447893297",
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