Law on monopolies needed

The tendency for the growth of monopolies and cartels in our national economy appears to be getting due attention from the government. In a meeting with Commission VI of the House of Representatives on Monday, the Minister of Investment-Chairman of the Investment Coordinating Board, Sanyoto Sastrowardoyo, said the government would no longer grant expansion permits to industries which already control 50 percent of the domestic market. The government will also prevent control of both upstream and downstream products by certain groups.

The government's policy as disclosed by Sanyoto was greeted with regret by Indofood, which is the foods division of PT Indocement Tunggal Perkasa company.

The government's reason for refusing PT Indofood an expansion permit was to avert cartel and monopolistic practices. In our view the decision has a solid basis because according to the Constitution there is no place for cartels and monopolies in the Indonesian economy.

For this reason we have always in this column proposed that, as soon as possible, a law be passed to regulate monopolies as has been done in most liberal countries such as the United States.

-- Suara Karya, Jakarta