Law on monopolies needed

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