Indonesia should stop monopoly: Hartarto

JAKARTA (JP): Indonesia should start dismantling monopolistic and oligopolistic practices to make its economy healthier, Coordinating Minister for Industry and Trade Hartarto said yesterday.

Speaking before more than 200 economic students in Yogyakarta yesterday, Hartarto said that protection, monopoly and oligopoly contradict the principles of fair competition.

"Continuing practices of protection, monopoly and oligopoly will only hamper the development of related businesses whenever they enter competition," Hartarto said in his speech on Indonesia facing free trade in 2020.

He said any industry which is developed by monopolistic and oligopolistic practices will result in unhealthy practices, which in turn will hamper the creation of supporting and related industries.

"That's why, from now on, we have to find ways to dismantle protection, monopoly and oligopoly which still exist in our economy," Hartarto said.

He noted that the deregulation package which was announced on May 23 is aimed at improving the efficiency of Indonesia's industrial structure.

With the deregulation package, which cuts tariffs on 6,030 items, Indonesia's import tariffs on most items are expected to reach a level of zero to five percent by 2003, when the ASEAN free trade area is introduced, he said. (rid)