Dispose of cartels

In its annual report, the World Bank notes, among other things, that a number of industries in Indonesia operate like cartels supported by government policies. According to the World Bank this practice has eroded competitive spirit and in a number of instances is hurting consumers through excessively high prices. The cement, paper and pulp industries are mentioned as examples of cases in which such cartels exist.

Even without the World Bank's assessment, the problem of cartel practices has often been raised by observers in this country. This is an old problem which continues to exist. If this international institution is now making its own assessment, all this should be regarded as an effort to remind us that certain things are still in need of improvement.

From a legal point of view, the actors in these cartel practices cannot be said to be acting against the law -- since no law or prohibition of cartels exists. Even so, their harmful practices should not be allowed to continue. Laws governing competition and to limit the concentration of economic resources as well as anti-monopoly and anti-trust laws are all means to prevent such practices.

Pending the passage of such laws, the government should demonstrate its political will to stop cartel practices. Government intervention, whether we like it or not, is needed. If those practices exist because of its support, now is the time for the government to perform its duty and stop them.

-- Bisnis Indonesia, Jakarta