Government Asked to Intervene in Carrefour Case
Tuesday, 21 April, 2009 | 12:29 WIB
TEMPO Interactive, Jakarta:The Business Competition Monitoring Commission (KPPU) is urging the government to immediately intervene in the case of monopoly charges against Carrefour. KPPU member, Tadjuddin Noer Said, said unhealthy competition in the retail sector cannot be separated from government policies. “Unfair competition takes place because of government policies, so we hope the government immediately intervenes in this case,” he said yesterday.
According to Tadjuddin, the government must produce a law on modern retail businesses because the rapid growth in the retail sector is not being supported by a similar growth among suppliers and small-scale businesses. “This is a serious matter. The minister’s regulation is powerless,” he said,adding that the Carrefour case is just a small example in the modern retail business sector.
The government’s regulation, Tadjuddin said, has enabled Carrefour and made it the benchmark for other modern retail businesses. As a consequence, there is an imbalance between the suppliers and the modern retailers. “Whatever the modern retailer proposes must be obeyed by the suppliers,” he said.
Tadjuddin said during their monitoring of the suppliers, the KPPU found the suppliers underwent pressure when making contracts. “Yet, a business contract must have equal opportunities,” he stressed.
The team leader inspecting the Carrefour case, Dedie Martadisastra, said the suppliers had problems meeting therequirements set by Carrefour. “Even established suppliers faced difficulties, let alone small-scale businesses,” he added.
Yesterday, nine suppliers, namely the Indonesian Cosmetic Companies Association, the Indonesian Modern Market Suppliers Association, the Indonesian Market Traders Association, the Soft Drink Industry Association, the Indonesian Garment and Accessory Suppliers Association, the Iodine-Salt Producers Association, the Food and Beverages Businessmen Association, the Indonesian Electronics Association, and the National Canned-Meat Association, gave their comments to the KPPU. The nine associations’ spokesperson, Putri K. Wardani, would not provide details of the testimonies given to the KPPU.
VENNIE MELYANI
TEMPO Interactive, Jakarta:The Business Competition Monitoring Commission (KPPU) is urging the government to immediately intervene in the case of monopoly charges against Carrefour. KPPU member, Tadjuddin Noer Said, said unhealthy competition in the retail sector cannot be separated from government policies. “Unfair competition takes place because of government policies, so we hope the government immediately intervenes in this case,” he said yesterday.
According to Tadjuddin, the government must produce a law on modern retail businesses because the rapid growth in the retail sector is not being supported by a similar growth among suppliers and small-scale businesses. “This is a serious matter. The minister’s regulation is powerless,” he said,adding that the Carrefour case is just a small example in the modern retail business sector.
The government’s regulation, Tadjuddin said, has enabled Carrefour and made it the benchmark for other modern retail businesses. As a consequence, there is an imbalance between the suppliers and the modern retailers. “Whatever the modern retailer proposes must be obeyed by the suppliers,” he said.
Tadjuddin said during their monitoring of the suppliers, the KPPU found the suppliers underwent pressure when making contracts. “Yet, a business contract must have equal opportunities,” he stressed.
The team leader inspecting the Carrefour case, Dedie Martadisastra, said the suppliers had problems meeting therequirements set by Carrefour. “Even established suppliers faced difficulties, let alone small-scale businesses,” he added.
Yesterday, nine suppliers, namely the Indonesian Cosmetic Companies Association, the Indonesian Modern Market Suppliers Association, the Indonesian Market Traders Association, the Soft Drink Industry Association, the Indonesian Garment and Accessory Suppliers Association, the Iodine-Salt Producers Association, the Food and Beverages Businessmen Association, the Indonesian Electronics Association, and the National Canned-Meat Association, gave their comments to the KPPU. The nine associations’ spokesperson, Putri K. Wardani, would not provide details of the testimonies given to the KPPU.
VENNIE MELYANI