Abolishment of monopolies
Abolishment of monopolies
Senior economist Sumitro Djojohadikusumo has recently
recommended the abolishment of monopolies. Coordinating Minister
for Economic and Finance Saleh Afiff has said that monopolies
will be eradicated. Business tycoon Sudwikatmono welcomes the
idea and is ready for the situation. The government must be ready
too to bear the consequences of the abolishment of monopolies.
The rate of the rupiah against other currencies has been
floated to follow the mechanism of the global market. If
monopolies are abolished, it will be in line with the floating of
the currency. Thus, commodity prices in Indonesia will also be
subject to the mechanisms of the international market.
The consequence is that imports and exports of commodities
must also be free. Anybody, if capable, is allowed to import and
export goods. Prices of goods and services at home will increase
or decrease, depending on international prices. Wheat flour,
soybeans, corn, garlic, refined sugar and plastic will decrease
in price, because they are cheaper in the global market. On the
other hand, cement, cooking oil and paper will become more
expensive because their world market prices are higher.
The abolishment of monopolies will possibly push producers at
home to work more efficiently, also in the services sector,
because they will have to enter into free competition with goods
and services from abroad. Raw material and cheap labor in
Indonesia will support efforts toward efficiency in the
production of goods and services. Naturally, the government must
also take stern measures to eradicate all forms of legal and
illegal levies, invisible costs which disproportionately increase
production cost of goods and services. Workers, civil servants
and Armed Forces members must be given higher pay.
Indonesia's tax system must be reviewed. The taxes to be borne
by the community, both direct and indirect, should be
proportionate to those in neighboring countries. Tax facilities
for large-scale businesses must be abolished.
The House of Representatives must immediately pass anti-
monopoly and anti-cartel laws. All forms of corruption and
collusion must also be eliminated. This is if there is serious
intention to cater for the welfare of all the people in
Indonesia.
SUHARSONO HADIKUSUMO
Jakarta