A bold step

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