Antimonopoly law helps small enterprises
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)