Govrnment supports House antimonopoly bill

JAKARTA (JP): The government will support an antimonopoly bill recently drafted by the House of Representatives, Minister of Industry and Trade Rahardi Ramelan said on Wednesday.

"This draft represents the people's aspirations because it was drafted by the House of Representatives. It is a milestone in the country's political and democratic history," Rahardi told reporters after a House plenary session.

A team of 34 legislators crafted the bill, an exercise not performed by the national legislature since 1971.

Rahardi said the government would start studying the bill with a House special committee on Monday.

"We hope to finish adjustments in six months, and the government would then establish regulations and presidential decrees related to the law," he said.

Asked whether the government would submit its own antimonopoly bill, Rahardi indicated that no draft existed that could be forwarded to the legislature.

"I don't have any other draft aside from this one," he said, contradicting a previous statement that a government team was preparing its own antimonopoly bill.

The government will, however, contribute its views and give input to the House bill, he said.

For nearly 30 years, the government had drafted bills and submitted them to the House for deliberation before being approved by the president. This time, the House beat out any government plans to submit a bill on the issue.

The legislation, dubbed the Prohibition of Monopoly Practices Bill, consists of 11 articles and 53 subsections.

It regulates and prohibits all kinds of business practices or agreements which could distort market competition, establishes a commission on business competition to monitor the law's implementation and sets both criminal and administrative charges against violators.

Rahardi said the government backed the establishment of such a commission to oversee business competition in the country.

"This kind of commission is common in other countries, like the Federal Trade Commission in the United States," he said.

In article six, the bill stipulates an independent commission be established, consisting of a chairman, two deputies and 27 members from 20 provinces.

The commission would be appointed by presidential decree and would be ultimately responsible to the president.

The commission members would consist of business figures, economists and legal experts proposed by the Chamber of Commerce and Industry to the government through the House.

It would have the authority to evaluate business agreements and activities for indications of monopolistic practices and would have the authority to take action against violators.

It would also act as an advisor to the government on measures related to monopoly practices, regularly reporting to the president and the House.

The bill would allow a six-month adjustment period starting from the law's effective date to allow businesses to comply with the new regulations. (das)