Antitrust watchdog needs legal support

Antitrust watchdog needs legal support

Urip Hudiono, The Jakarta Post, Jakarta

The Business Competition Supervisory Commission (KPPU) expressed
a need for better support from relevant judicial institutions in
enforcing the Antimonopoly Law, as some of its antitrust rulings
have ended up in court and have resulted in unfavorable verdicts.

"We particularly need judges who really understand the
Antimonopoly Law and related cases. We also need better
cooperation from the police, the Supreme Court and the Ministry
of Justice and Human Rights," KPPU chairman Sutrisno Iwantono
said on Monday during a review of the Antimonopoly Law.

The KPPU has so far issued 22 rulings on cases of unfair and
monopolistic business practices, but four of them had been taken
to court by dissatisfied companies. Of these, the KPPU lost three
because of "procedural violations".

"The trials never even went into the substance of the cases,"
Iwantono said.

The KPPU lost its final appeal at the Supreme Court in the
case of PT Indomobil Sukses International's alleged exclusive
tender during the selling of its stocks.

The KPPU also lost at the district level in the case of Garuda
Indonesia's unfair ticket reservation system, and in the case of
Jakarta International Container Terminal's (JICT) alleged
monopoly practice in Jakarta's port of Tanjung Priok. The
commission is currently filing appeals for the cases.

A remaining case on an alleged bus cartel in Jakarta,
meanwhile, is still being tried.

The commission is also processing another six cases, including
one on an alleged sugar cartel. These will bring its case number
to a total of 28 since its establishment in 2000 following the
enactment of Law No. 5/1999 on antimonopoly and unfair
competition.

Iwantono also suggested that a special antitrust court should
be established like in Germany, where only the Bonn high court
was authorized to handle such cases.

KPPU member for legal affairs Syamsul Maarif added that in
Germany, such cases were also tried under a corresponding
administrative law, unlike in Indonesia where they are usually
tried as civil suits.

He also explained that if such a court was to be established
in Indonesia, the government and the House of Representatives
would need to amend Law No. 14/1970 on courts, which currently
acknowledges only public courts, state administrative courts,
military courts and religious courts.

Syamsul, however, was optimistic that the Antimonopoly Law
would be upheld eventually and better the country's business
environment, citing improvements in tenders conducted by oil
company PT Caltex Indonesia and state-owned banks Bank Negara
Indonesia (BNI) and Bank Mandiri.

The law, he added, had also improved business competition in
the shipping and airline industries to benefit the public with
cheaper fares.

"The law is changing, in the long run, the tendency of
corporations to build monopolies, cartels and unfair
competition," he said.

Under the Antimonopoly Law, the KPPU is authorized to
thoroughly investigate indications of unfair business practices
by corporations and issue rulings against them. The rulings
become effective within 14 days of their issuance, pending
objections from the companies concerned.

The law prohibits an individual company from controlling more
than 50 percent of the domestic market, and two or three
companies from controlling a combined 75 percent of the market.

Individuals or companies found guilty of violating the law
face fines of up to Rp 100 billion (US$11.76 million) or up to
six months in prison.