Antimonopoly bill 'must hit its target'

Antimonopoly bill 'must hit its target'

JAKARTA (JP): Minister of Industry and Trade Rahardi Ramelan
suggested on Monday that the House-initiated antimonopoly bill
should also regulate unfair trading practices by multinational
companies.

Speaking at the plenary session of the House of
Representatives, Rahardi said multinational firms often practiced
transfer pricing by quoting lower product prices for local
subsidiaries.

This discriminates against other local companies.

"However, the regulation must be pursued in an appropriate
manner so that it shoots the right targets," he said.

Rahardi also said the bill should regulate the banning of any
business agreement between local and foreign entities, the
implementation of which could hamper business competition in
Indonesia.

The bill should regulate all unfair business practices, not
only in trading, but also those conducted through rental and
leasing agreements.

However, Rahardi warned that the bill should not be too rigid
in terms of market shares limitation as this could be
counterproductive.

The minister proposed that the bill should not rigidly limit a
company's market shares at 30 percent maximum as this could
create an unfriendly climate for investors.

He contended that such a limitation would discourage investors
to enter capital-intensive industries.

Rahardi also suggested that the bill provide an exception or
some leeway and protection for small-scale businesses so that
they could grow accordingly.

"Such an exception is expected to give broader business
opportunities to small enterprises so they can expand their
business by abiding by the norms existing in the competition
law," he was quoted by Antara as saying.

Rahardi supported a suggestion that the bill should provide a
clause for the establishment of an independent agency or
institute to monitor the implementation of the antimonopoly law.

Such an agency must be independent and nonstructural and,
therefore, should not be under a ministry. It must be able to act
fairly and not be influenced by anybody either inside or outside
the government.

The antimonopoly bill is the first House-initiated bill since
1971. It was drafted by a group of 34 legislators using their
initiative right to propose a bill.

Consisting of 11 chapters and 53 articles, it was formally
submitted to the House's plenary session two weeks ago. The
government supported the bill last week and gave its views and
comments on the bill on Monday.

The government and the House will soon deliberate the bill,
which is expected to be completed by the end of this year. (29)