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)