A bold step

The Investment Coordinating Board (BKPM) has made a rather unexpected decision. It rejected a request by Indofood to build four new noodle factories.

Had BKPM granted the request, the production of noodles for both the local and export markets -- if this exists -- would have been in the hands of only a handful of people in one single business group.

At present, Indofood already controls more than 82.5 percent of the domestic market for noodles. It is dominant not only in the noodle market but also in that of soft drinks, soy sauce and other food products.

The public knows that big businesses in Indonesia have reached their positions due to special facilities. Any monopolistic tendencies on their part should therefore be averted. We are happy that the government, which provided them with those facilities in the past, is now willing to make them see the fact that monopolies only weaken the national economic system.

-- Media Indonesia, Jakarta