Contesting monopoly

Contesting monopoly

Monopoly is justifiable as long as it is used for the benefit
of the people, says the new trade and industry minister Mohammad
Hasan who is a former business tycoon.

It is true that strategic sectors like telecommunications,
power, railways or strategic commodities like rice and fuel oil
should be in the hand of the government.

In due time privatization will take place like those in
telecomunications and power sectors albeit with price control
from the government.

The question is how far can we extend monopoly to other
sectors? Secondly, who will have the last word to define the
"benefit of the people?"

One thing is certain, this country, unlike the often tainted
liberal United States, still has no anti-monopoly law. It means
any company, given the chance to have a monopoly over a certain
product or commodity, could do so.

Or in the absence of a monopoly, a financially strong company
can always set up a cartel with other companies resulting in a
power to dictate price level.

In the absence of an anti-monopoly law coupled with weak
consumer protection and ineffective government control the stake
is too high for the people to allow such a monopoly to exist.

Also, we have lessons to learn from the current crisis.
Monopoly has a role in the crisis that is it helps undermine the
structure of our industry.

So, shall we repeat this mistake?

We hope this is not what the new minister has in his mind.

-- Republika, Jakarta