Monopolistic practices denounced
Monopolistic practices denounced
JAKARTA (JP): The speaker of the House of Representatives, a
business analyst and a lawyer yesterday all denounced
monopolistic business practices in the country and called for
legal reforms to ensure fair competition.
"Unfair competition and the concentration of economic power in
one group or monopoly will harm the public. Such practices are
also against the ideals of social justice," House speaker Wahono
said in a seminar on monopoly and cartel sponsored by the
Indonesian Democratic Party here yesterday.
"Existing legal structures, however, do not sufficiently
support the country's small businesses nor do they guarantee fair
competition," said Wahono, a former Golkar chairman.
Despite Indonesia's robust economic growth, public and media
criticism of several dominant business groups, especially those
believed to be politically well-connected, has become
increasingly audible in the last two years.
The government has promised to pass an anti-monopoly law soon
to prevent business groups from dominating industries at every
stage, from the upstream level to the downstream operations.
Wahono also urged the government to carry out legal reforms to
rectify the situation and also to anticipate trade liberalization
in the near future.
"We must change our legal structure because our economy must
accommodate the world demand for trade liberalization, which is
based on the principles of competition," he said.
Indonesia is a signatory of the Marrakesh Treaty, which marks
the completion of the Uruguay Round of the General Agreement of
Tariffs and Trade.
Meanwhile, lawyer B.M. Kuntjara Jakti said yesterday that
Indonesia is equipped with only two laws which enforce fair
competition.
"We have Article 382 of the Criminal Code, which addresses
various scams and forgeries and the Industrial Law No. 5/1984,"
he said.
"Regrettably, these are not adequate," he said.
Kuntjara Jakti also suggested that the government introduce
several acts or laws similar to the Anti Trust Law of the United
States or the Monopolies and Restrictive Practices Act of
Britain.
Business analyst Christianto Wibisono added that Indonesia
should not shy away from adopting a "modern liberal economic
system".
Such a system, as exemplified by the United States, does not
allow unfair market distortions caused by cartels or monopolies,
he said. (hdj)