Monopolies can benefit consumers, says minister

Monopolies can benefit consumers, says minister

JAKARTA (JP): The concentration of industrial activities from
the upstream to downstream levels in a certain group of companies
will benefit consumers as long as their operation is efficient,
Minister of Industry Tunky Ariwibowo said yesterday.

"Since the consumers get advantages from the efficiency, we
have no objection to such monopolistic practices and the
government can control the domestic market by importing similar
products whenever local prices are very high," Tunky said after
speaking at a seminar organized to coincide with the Indonesian
Products Expo.

Tunky said his ministry is hosting an inter-ministerial
meeting to formulate a decree aimed at restricting industrial
expansion.

Coordinating Minister for Industry and Trade Hartarto said
earlier this month following a meeting with President Soeharto
that large business groups were still allowed to expand their
production capacities despite their leading position in the local
market.

However, Tunky agreed with State Minister of Research and
Technology B.J. Habibie, who told the seminar on Monday that the
country needs to restrict monopolistic practices by limiting the
expansion of companies already controlling 50 percent of local
market shares.

Tunky also said yesterday that big companies can work with
smaller businesses to increase the competitiveness of Indonesian
products overseas.

Big industrial companies, for example, can encourage smaller
firms to supply components for their machinery and engineering
plants, he said.

Big companies should also assist smaller businesses in
improving management skills and facilitating access to loans, he
added. (kod)