Antimonopoly bill fails 'to ensure fair competition'

Antimonopoly bill fails 'to ensure fair competition'

JAKARTA (JP): The draft law on monopoly practices does not go
far enough in ensuring healthy and fair business competition, a
non-governmental organization (NGO) says.

Zaim Saidi of the Public Interest Research and Advocacy Center
(Pirac) said on Thursday the bill lacked strong protection for
consumers and small businesses against unfair business
competition. It is currently under review by the House of
Representatives.

"Substantively, the bill is still lame," Zaim told The Jakarta
Post.

He said the bill -- called the Prohibition of Monopoly
Practices -- tended to side more with business players than the
public.

"Several basic principles to protect the interests of the
public are not reflected in the bill," he said, adding that the
bill's main aim did not seem to be adherence to the principle of
fair economics.

Legally, the public had very little recourse to ensure
violators of the law would face just sanctions, he said.

The bill did not mention whether the public could file
individual or class action suits.

The antimonopoly bill, which is currently being reviewed by
the House's special team, was drafted by a group of 34
legislators using their initiative rights to propose a bill. It
is the first House-initiated bill since 1971.

Consisting of 11 chapters and 53 articles, it was formally
submitted to the House's plenary session last week. The
government supported the bill on Wednesday and will begin
deliberating it with the House's special team next Monday.

Zaim said the bill was soft on violators. "Those who are
suspected of violating the law would not be required to prove
their innocence in a court of law in order to be acquitted of the
charges."

The House also remained exclusive in the lawmaking process by
not letting other parties participate in both the drafting and
deliberation process.

"It is important for the public to participate in the drafting
of the law. They should include organizations and public groups
in the lawmaking process."

He said Pirac and two other groups, the Association for the
Development of Small Enterprises (Pupuk) and the Foundations for
Strengthening the People's Participation, Initiatives and
Partnerships (Yappika), had previously tried to meet with the
House's special committee on the bill.

The groups were scheduled to meet on Oct. 15, but the meeting
was canceled because the team members were busy."

"They rescheduled it on Oct. 22, but by that time, they will
have had already begun deliberating the bill with the
government." He said he was extremely disappointed by the change
in plans.

Earlier, the three NGOs had also proposed a similar bill
dubbed the Antimonopoly/Business Competition bill. But the House
has not given any response.

Zaim said that the three organizations wanted the House to
use their draft to enrich and complement the bill now being
deliberated.

He said the NGOs' bill not only prohibits shady and unfair
business competition, but also restructures the market system,
which has been deemed slanted.

It rules that everyone subjected to the bill must prove that
their business were not monopolistic or distorted.

Several companies built their business empires due to special
privileges and monopolies provided during Soeharto's 32-year
regime. (das)