Legislators submit antimonopoly bill, start deliberation

JAKARTA (JP): The House of Representatives (DPR) began on Friday the deliberation of the long-awaited antimonopoly bill, introduced to ensure fair competition in the country's business activities.

The draft law, which is called the Prohibition of Monopoly Practices Bill and consists of 11 chapters and 53 verses, was submitted by a group of 38 legislators from the House's four factions.

If the draft law is approved, it will become the first law drafted and submitted by House members, who according to the Constitution have the right to make a law but have never exercised the privilege.

Group member Rambe Kamarulzaman of the ruling Golkar faction said on Friday the representatives exercised their "initiative rights" to propose the legislation, which had not been invoked since being introduced in 1971.

He said the government had prepared its own draft law on combating monopolies but the House decided to first deliberate the group's draft.

"Our draft was the first one submitted to the House, that is why it will be deliberated first," Rambe said.

A similar plenary session will be held next Thursday to hear the House's response to the draft law, he said, adding that if the bill is accepted then the House would form a working group to debate it further.

Rambe said the House decided to draft a law on monopolies out of concern for the current unhealthy business climate in the country.

"Many people currently have to suffer from monopolistic business practices in the country," he said. "We think it's important to draft a bill which prohibits any graft practices which could lead to monopoly," he added.

Much of the business sector in the country is currently controlled by a handful of business groups involving former president Soeharto's circle, making the economy more fragile in times like the current crisis.

Rambe said the legislators' draft was prepared over three and a half months from May 28 to Sept. 13.

The drafting process involved experts, economists, academics, business figures and non-governmental organizations, he said.

He said the group would deliver the draft to President B.J. Habibie and request that government representatives study the bill.

The bill outlaws business agreements which might distort market competition such as price fixing, market allocations, boycotts, closed deals, cartels, trusts, monopolies, and vertical integrations.

The bill would also prohibit market domination, conspiracy against business rivals, deceiving trading schemes and fraudulent practices.

It regulates dubious maneuvers which might be considered monopolies, such as mergers, consolidations, liquidations, acquisitions, as well as holding multiple executive jobs.

The bill advocates the establishment of a Commission for Business Competition to investigate, adjudicate and advise on the monitoring of the law's implementation.

Violators of the law will face administrative and criminal charges, the legislation says. (das)