Equalizing opportunities

Seen from the purely business point of view the ambition to control both upstream and downstream industries is natural. It ensures continuity of production. Furthermore such a wide span of control ensures absolute competitiveness of the product. But aside from those positive aspects monopolization solicits the disfavor of the public as well as that of other entrepreneurs since the price of the product will be controlled by one single group.

Experience has already demonstrated that the negative impact of such control of an industrial sector by just one party outstrips the merits of such an arrangement. The gaps that result in terms of income, access and opportunity will widen as economic strength is amassed in the hands of one group.

Therefore we can understand the government's decision to stop issuing licenses for downstream industries to companies that already operate upstream industries. By so doing other entrepreneurs will be able to take advantage of the opportunity.

Even so we hope that the restriction that is being imposed on businesses operating upstream industries will be defined a little sharper. Does the new ruling cover the matter of share ownership? Or will those businesses be allowed to own minority shares in downstream industries?

It will not be easy to set out precise distinctions regarding the question of ownership because the political calculations may differ vastly from purely business ones.

-- Bisnis Indonesia, Jakarta