Antimonopoly body to probe eight leading companies
JAKARTA (JP): An antimonopoly watchdog will soon investigate eight leading companies for possible violations of the antimonopoly law.
Syamsul Muarif, a member of the Business Competition Supervisory Commission, said on Tuesday that all eight companies controlled more than 50 percent of the market share in their respective businesses.
"According to law, it is our duty to be suspicious of any company that controls over 50 percent of the market, but if they are not preventing others from entering the market, then that's fine with us," he said at a media briefing here.
The eight companies are: PT Inti Boga Sejahtera, which controls 60 percent of the country's cooking oil market, PT Indofood Sukses Makmur, which holds a 90 percent share in the instant noodles market, and PT Bogasari Flour Mills, holding 90 percent of the country's wheat flour market.
The others are PT Aqua Golden Mississippi, which holds an 83 percent market share in the mineral water market, PT Unilever Indonesia, holding a 58 percent share in the detergent market, PT Santos Jaya Abadi, controlling 50 percent of Indonesia's instant coffee market, PT Asahimas Flat Glass, controlling 65 percent of Indonesia's glass market, and Pertamina, controlling 60 percent of the country's lubricating oil, he said.
Another commission member, Faisal Basri, said the surveillance of the eight companies did not necessarily mean that they were guilty of unfair practices.
Faisal said big companies were worth the suspicion because they were the ones who were most susceptible to unfair practices in the marketplace.
"If for a long time there are no new players in the market, then it is wise to be suspicious of big companies. Have they deliberately prevented other players from coming in?" he said.
Soy M. Pardede, another commission member, said unfair monopolistic practices include operating a strong distribution network to allow it to control prices.
"We know that in the past the Salim Group used these methods to control the market, but I don't know, it seems that these practices are well hidden now," he said.
In the services sector, state-owned enterprises such as sea transportation company PT Pelni, land transportation company PT Damri, train company Perusahaan Jawatan Kereta Api (PJKA), and telecommunications company PT Telkom will also be investigated, Soy said.
The commission was established in June by President Abdurrahman Wahid following the enforcement of the Antimonopoly and Unfair Competition Law No. 5/1999.
The commission, with 11 members, has the right to investigate businesses which are suspected of unfair practices and impose sanctions.
The antimonopoly law has been in effect since March and the commission has given companies until September this year to reorganize their businesses before the law is fully enforced.
Soy said in the six months after the establishment of KPPU many companies had tried to adjust to the antimonopoly law.
The commission is currently investigating PT Indomaret and PT Caltex Pacific Indonesia for their alleged involvement in monopolistic practices.
"We are in the second stage of investigations," Soy said, adding that the secondary investigations would take approximately 60 days with a possible 30-day extension, and another 30 days for verification.
The commission will create next year a criteria that will exempt state-owned companies which sell goods or services that concern the welfare of the general public from the antimonopoly law, he said.
The 1945 Constitution stipulates that goods and services that concern the welfare of the general public should be controlled by the state.
But he said the antimonopoly law had yet to clearly define the criteria of companies which fall under the category of providing goods or services for the welfare of the general public. (tnt)