Antimonopoly law applicable: YLKI
Antimonopoly law applicable: YLKI
JAKARTA (JP): Analysts said on Thursday the new antimonopoly
law, despite its many shortcomings, should be welcomed because it
was badly needed to ensure fair competition in the market.
"Although the law still has many loopholes it is still
applicable," said deputy chairman of the Indonesian Consumers
Foundation (YLKI) Agus Pambagio.
He acknowledged that the law was far from perfect but its
implementation would still be able to protect small companies
from unfair competition from the bigger players.
The government's plan to enact the newly passed consumer
protection law will complement the implementation of the
antimonopoly law, he said.
President director of CS Consultant Gary W. Christian said
deficiencies were only to be expected in the law.
"In fact, in terms of statutory law, the Indonesian
antimonopoly law is far more detailed than the U.S. statutes on
the subject."
He said it would take years to improve the law in order to
prevent monopolies and other unfair competition practices, but it
could be done in line with good implementation.
"The United States has adopted an antimonopoly law since 1890
and, after several revisions, the current law is still not
perfect. There are several cases that still cannot be settled,"
he said.
"But we never stop improving the law."
The antimonopoly and unfair competition law, passed by the
House of Representatives in February and ratified by President
B.J. Habibie on March 5, includes the prohibition of a company
from holding more than 50 percent of the domestic market.
Violators face Rp 100 billion (US$11.76 million) in fines and
six-month jail terms for the executives.
The enforcement of the law, which will become effective 18
months after ratification by the President, will be overseen by a
Business Competition Supervisory Commission, whose members will
be appointed by the President following prior approval from the
House.
The law stipulates, however, that a company will not
necessarily be sanctioned if the independent commission
determines that the more than 50 percent market share was gained
due to efficiency and the company did not abuse its dominant
position to restrict new market entrants.
Economist Sri Mulyani Indrawati said that despite its
weaknesses, an antimonopoly law would give more business
assurance to companies operating in Indonesia.
The law, she said, provided an assurance to all parties who
wanted to enter business.
"A certainty in doing business is one of the key factors
needed to attract foreign investors to the country. And,
previously, it fully depended on what the authorities wanted,"
she said. (gis)