Antitrust watchdog faces uphill battle

Antitrust watchdog faces uphill battle

Urip Hudiono, The Jakarta Post, Jakarta

With many of its rulings challenged in court, the Business
Competition Supervisory Commission (KPPU) is still facing an
uphill battle in its task of establishing a fairer business
environment in the country.

The lack of proper knowledge and public misperception
regarding what the agency is all about, is making it even harder
for the antitrust watchdog to carry out its duty, according to
KPPU deputy chairman Syamsul Maarif.

Speaking on Monday in a forum reviewing KPPU's performance
over the years, Syamsul explained that out of 40 cases the
commission had handled so far, only 10 of them had been settled
and upheld.

"A majority of the cases, however, were not immediately
settled as we often had to go through lengthy legal battles in
the courts to face those who challenged our rulings," he said.

Of the total 23 cases the KPPU has issued rulings on, seven
were challenged in courts.

Worse still, the country's courts seem to be unfavorable
toward the commission, as a total of five rulings out of the
seven had been overturned.

"The court only upheld two of our rulings, while overturning
five others," Syamsul said.

Though KPPU appealed to the Supreme Court in all the five
cases, Syamsul added, KPPU eventually lost in one of the cases --
a high-profile case revolving around PT Indomobil Sukses
International's alleged exclusive tender during the selling of
its stocks.

The remaining four -- including cases of Garuda Indonesia's
allegedly unfair ticket reservation system and the Jakarta
International Container Terminal's (JICT) alleged monopoly in
Jakarta's Tanjung Priok Port -- are still awaiting a decision
from the Supreme Court.

Syamsul said the commission was facing problems with the
public's lack of knowledge about the KPPU.

"Many, including several government officials and business
enterprises, have confused our duties with the Corruption
Eradication Commission, and more ironically, consider us just
another non-governmental organization that they can ignore," he
said.

The KPPU was established on June 7, 2000 under the
Antimonopoly and Unfair Competition Law No. 5/1999, which
stipulates its rights to investigate indications of unfair
business practices and issue rulings against them. Any objections
should be filed directly in court.

The KPPU made headlines earlier this year after handing down a
ruling on the US$184 million sale of two Pertamina tankers,
saying it was fraught with irregularities between Pertamina and
its partners -- Singapore-based financial advisor Goldman Sachs,
tender winner Bermuda-based shipping company Frontline Ltd. and
its agent, Indonesian shipping firm PT Equinox.

Goldman Sachs has challenged the ruling, submitting the case
last week to the Central Jakarta District Court. It is very
likely that Pertamina's other partner Frontline would also take
its objection to court.

Elsewhere, KPPU member Soy M. Pardede said that the commission
would publish its guidelines to prevent unfair tender practices
within this month.

The guidelines would focus mainly on tenders involving state
institutions and public funds, and would cover potential
conspiracies between tender holders and participants, as well as
between the participants themselves.