Expert says KPPU should exclude businesspeople
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)