The end of monopolies?

The end of monopolies?

Even as the rupiah was enduring relentless pressure, the
surprise statement reached us about government plans to remove
monopolies. The statement, made by the Coordinating Minister of
Economic Affairs and Finance/Development Supervisor, Saleh Afiff,
immediately sparked comment and won the strong support of people,
some of whom even wanted to see the plan realized.

This spontaneous reaction can be attributed to at least three
facts. First, monopolist practices have existed for too long in
our national economy. They are as old as the present New Order,
which means they have had 30 years to take root in our society.

Second, monopolies are unsound because they hurt the people.
The practice allows consumer prices to soar, while huge profits
are reaped by monopoly holders. Third, monopolies cause
distortions that in the long run can damage the national economy.
Monopolistic practices also eliminate any transparent and
efficient market mechanisms, which leads to an imbalance in the
distribution of assets.

Public support (for the plan) is essential so the national
economy can operate according to the workings of the market
mechanism and achieve a balance between producer and consumer
interests. This ensures that the goal of establishing an affluent
and prosperous society can be achieved.

Any attempts to eliminate monopolistic practices, however, are
closely linked to efforts to achieve economic democracy. Without
economic democracy, it will be impossible to eliminate
monopolistic practices. This is one grave challenge that we have
to face before we can enter the free trade era, which will be
characterized by intense competition between countries. The
political will of the government is therefore needed, especially
to enforce all existing regulations with strong sanctions.

-- Bisnis Indonesia, Jakarta