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.