Antimonopoly law helps small enterprises

JAKARTA (JP): The newly approved antimonopoly law will benefit small and medium-sized enterprises by providing a healthy market environment, a leading German anti-trust expert said on Monday.

"The law was designed to protect small and medium-sized companies from monopoly practices," said Wolfgang Pfletschinger, a former director of the German Antimonopoly Board at a seminar on small and medium-sized enterprises under the antimonopoly law.

He said at least three articles in the law were specifically designed to protect small enterprises.

One of the articles seeks to establish a favorable business environment by creating healthy competition and equal opportunity for all businesses sectors, Pfletschinger said.

He said that as in Europe, Indonesian businesses comprised more small enterprises, adding that the government must create a conducive environment for these businesses.

The antimonopoly law prohibits a company from controlling more than a 50 percent share of the market, opening increased competition opportunities for businesses.

Pfletschinger said however that market share was very hard to define.

"The danger of a monopoly is the attempt to abuse market power for edging competitors out of the market," he said.

Another article in the law empowers small enterprises to report any kinds of monopoly practices to the Business Competition Supervisory Commission, which will oversee implementation of the law.

"Small firms and cooperatives should not be afraid of retaliatory measures from big enterprises in reporting monopoly cases, as their identity will be protected by the commission," Pfletschinger said.

He hailed the article which exempts small enterprises from the market-domination rule, but warned that small business must be clearly defined to prevent abuse of the special privilege.

He added, however, that the law alone would not be effective for bolstering small business development.

"The government should also help them with concessional loan financing, and assist them to set up an organizational forum as a political lobby to protect their interests."

Pfletschinger stressed the importance of independence within the Business Competition Supervisory Commission to ensure proper enforcement of the antimonopoly law.

The Ministry of Industry and Trade has nominated 23 candidates for the commission. President B.J. Habibie will shortlist the candidates to a list of 18 names.

The House of Representatives will select nine names from the 18 to become members of the commission.

According to the Ministry of Industry and Trade, the government will enforce the law in March 2000. (02)