Expert says KPPU should exclude businesspeople
JAKARTA (JP): Businesspeople should not become members of the Business Competition Supervisory Commission (KPPU) to ensure the independence of the antimonopoly watchdog, according to a German expert.
Speaking at a seminar here on Wednesday, Franz Juergen Saecker said the commission, which is being established to monitor the implementation of the newly approved antimonopoly law, should comprise mainly academicians, including legal and economics experts.
"Academicians are more difficult to be steered or bribed. The commission needs enthusiasts and independent experts to monitor what is going on in the market, how market players are running their businesses and provide analyses prior to the decision making on an alleged unfair business case," he said.
He suggested it would be better to include judges and experienced journalists in the antimonopoly commission rather than just business people.
However, Saecker said people should not demand too much from the commission, especially during the early years of its activities.
Members of the committee would need quite some time to fully comprehend the new law, understand their responsibilities and carry out their monitoring functions properly, he said.
According to him, the German cartel monitoring commission needed at least 10 years to obtain adequate knowledge and experience to perform its duties properly.
The government said it would "soon" propose the names of the candidates, some of whom would be prominent business figures, to the House of Representatives for approval. President B.J. Habibie is expected to swear in the commission members in October.
The Antimonopoly and Unfair Competition Law No. 5/1999, passed by the House of Representatives in February and ratified by President B.J. Habibie on March 5, is the country's first piece of legislation that directly deals with monopolies and other unfair business practices.
The law prohibits an individual company from holding more than 50 percent of the domestic market, and two or three companies from holding 75 percent of the market between them. Market share is determined by sales value rather than volume.
Business individuals or companies found guilty of violating the law will face fines of between Rp 1 billion (US$133,333) and Rp 100 billion and jail terms of between three and six months.
Under the law, the independent KPPU has the authority to monitor business agreements and activities in the country. It also has the power to investigate deals if there are indications of monopoly practices.
Saecker said the antimonopoly commission in Germany also included a team of 50 to 60 academicians and experts, whose role is to analyze business deals conducted in the country and provide the results to the commission.
He said it would also be good for Indonesia to consider establishing in the future another body outside the KPPU to monitor the latter's performance.
In Germany, the independent body consists of three academicians, a retired prominent businessperson and a representative of the labor union. It issues annual reports containing analyses and criticisms of the commission.
He said the body was so objective and influential that "no commission members or ministers wanted their names to be in the body's annual report". (cst)