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.