Dispose of cartels

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