Choose watchdog members carefully: Kadin

JAKARTA (JP): The Indonesian Chamber of Commerce and Industry (Kadin) urged the government, on Thursday, to be selective in choosing members for the antimonopoly watchdog, the Business Competition Supervisory Commission.

Kadin's vice chairman Soy M. Pardede said commission members should have integrity, be independent, impartial and be able to work effectively without bias.

The effectiveness of the law will depend largely on the technical competence, integrity and autonomy of commission members, since the antimonopoly law still has a lot of loopholes.

"There are many things that are still unclear which could lead to loopholes being found and utilized by businessmen. Strict supervision and direction by the commission will help improve the actual implementation of the law," he said.

The antimonopoly and unfair competition law, passed by the House of Representatives in February and ratified by President B.J. Habibie on March 5, prohibits a company from holding more than 50 percent of a domestic market. Violators face fines of up to Rp 100 billion (US$11.76 million) and jail terms of up to six months.

The enforcement of the law, which will become effective on Aug. 5, 2000, but will have a trial period earlier, will be overseen by the commission, whose members will be appointed by the President following prior approval from the House.

The commission will have the authority to evaluate business agreements and activities in its search for monopolistic practices, and to take action against violators.

However, the law stipulates that a company will not be penalized if the commission finds the company's market share was gained through efficiency and the company does not use its dominant position to restrict new entrants into the market.

The ministry of industry and trade said earlier this week that the government would soon submit the names of the commission members to the House for approval.

"We expect the commission members will be approved by the President in October at the latest, so that regulations for the implementation of the law can be prepared," ministry secretary- general Muchtar said.

Soy said commission members should not be actively involved in the business sector so as to avoid any bias in the commission's decisions.

"For example, members should give up their position in a company while serving on the commission."

Soy said the new antimonopoly law, despite its many shortcomings, should be welcomed because it is badly needed to ensure fair competition in the market.

"Although the law still has many loopholes it is still applicable," he said.

The consumer protection law, passed by the House in May, is expected to complement the antimonopoly law, he said.

Soy said Kadin would hold a seminar on antimonopoly law and consumer protection law on Aug. 31 in Hotel Borobudur Jakarta, in order to disseminate information regarding the two laws.

"Many people, both businessmen and consumers, do not understand the content of the two laws, which is vital for the business sector," he said.

Kadin's head of public policy department Rudy Lengkong said the government should inform the community before implementing the law.

"There is only six months left until the antimonopoly law will be partially enacted and seven months before the consumer protection law will be partially enacted. People should know of their rights and obligations under these laws. Otherwise they will be useless," he said. (gis)