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Too Many Economic Rents, Law Amendment is The Answer

Too Many Economic Rents, Law Amendment is The Answer
Law No. 5/1999 on Prohibition of Monopolistic Practices and Unfair Business Competition (inzet: Minister of Trade, Enggartiasto Lukita)
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JAKARTA - The Ministry of Trade (Kemendag) agreed to the amendment plan of Law No. 5/1999 on Prohibition of Monopolistic Practices and Unfair Business Competition. This amendment is expected to provide a stronger role and authority to the Business Competition Supervisory Commission (KPPU) to suppress monopolistic practices and cartels in the business sector.

Minister of Trade, Enggartiasto Lukita said there are still many monopolistic and cartel practices happening in the business world in Indonesia. Monopoly become the character of entrepreneurs.

"Therefore, there should be an arrangement that (monopoly and cartel, red) can not be done, if it happens to the people," said Enggar in Jakarta, Tuesday (24/10).

Enggar said the amendment of this Law is an initiative of the House of Representatives. This means the aspirations of the community voiced by its representatives in the state legislative body. He also strongly supports the amendment because KPPU requires a legal in order to break through and carry out extreme steps in upholding healthy competition business in Indonesia.

"There are too many economic rents in Indonesia, I want KPPU to do more extreme steps," said Enggar.

Law No. 5 of 1999 itself is considered less assertive in cracking down on business actors who violate the provisions. Chairman of the Business Competition Supervisory Commission (KPPU), Syarkawi Rauf said that the maximum penalty for violators of this Act is a maximum of Rp20 billion.

"The fine is virtually small for business people compared to the impact they cause," said Syarkawi.

Therefore, in some points to be discussed in this amendment, the matter of fines and legal sanctions which can be imposed by KPPU to the innocent business actor also become important agenda besides related to KPPU's institutional and KPPU's authority to sanction foreign business actors suspected of doing monopolistic practice in Indonesia.

"If the business can cross border, the crime that arises is cross border. We ask to be given the authority to crack down transnational crime," he said.



(rnz)