Government proposes names for antimonopoly commission

Government proposes names for antimonopoly commission

JAKARTA (JP): Minister of Industry and Trade Rahardi Ramelan
said on Tuesday that the government has nominated 25 names to
become members of the independent supervisory commission which
will oversee the implementation of the newly introduced
antimonopoly law.

Rahardi said several noted economists, such as Sri Mulyani
Indrawati of the University of Indonesia, Pande Radja Silalahi of
the Center of Strategic and International Studies (CSIS) and
Faisal Basri of the National Mandate Party (PAN), were among the
names proposed to become members of the Business Competition
Supervisory Commission (KPPU).

Rahardi declined to reveal other names of the proposed
commission members, but confirmed that several businesspeople
would be included in the commission.

"We will submit 18 names out of 25 nominated to the House of
Representatives for approval. The House will then select nine
names to become members of the commission," he said after opening
an antimonopoly seminar.

He said there were no top officials from his ministry which
were nominated to become commission members.

"Most of the names on the list are businesspeople from all
sectors, economists and representatives from universities and
business associations," he said.

"No one from my ministry, including myself, is included on the
list of prospective members," Rahardi said.

The government has proposed Erman Rajagukguk, currently a
senior assistant to the Cabinet secretary, to represent the
government in the commission, he added.

Rahardi said the government expected the commission would be
formed before the change of the current government.

"I hope the establishment of the commission will be approved
by the President in October at the latest so that regulations for
the implementation of the law could soon be formulated," he said.

The current Cabinet will end as soon as the new president will
be elected during the General Session of the People's
Consultative Assembly (MPR) in November.

According to the new antimonopoly law, the commission will
have the authority to monitor business agreements and activities
in the country and will also have the power to probe deals if
there are indications of monopolistic practices.

Rahardi said that President B.J Habibie issued Decree No.
75/1999, which rules the existence, duties and function of the
commission.

The decree states the commission is a nonstructural
independent body which is free from intervention by the
government and other parties.

"Of course, because it's an independent commission, all
businessmen must give up their positions as commissioners,
directors or executives in their companies while serving the
commission during the five-year period," he said.

The Antimonopoly and Unfair Competition Law 5/1999, passed by
the House of Representatives in February, is the country's first
legislation to directly deal with monopolies and other unfair
business practice.

For example, 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. A market share is determined by sales value rather than
volume.

Business individuals or companies found guilty of violating
the law will face fines between Rp 1 billion (US$133,333) and Rp
100 billion and jail terms between three and six months.

However, the final verdict on an allegation of unfair
competition conducted by a particular company would depend on the
commission's investigation of the company's behavior. (gis)