A Decade of KPPU Develops National Business Competition Policy
Monday, June 7, 2010 signifies a decade of the establishment of KPPU as a State’s Commission which has the tasks to supervise the business competition pursuant to Law Number 5 Year 1999 concerning Prohibition of Monopolistic Practices and Unfair Business Competition. As noted, KPPU and Law Number 5 Year 1999 cannot be separated from the efforts of reforms for the implementation of fair business competition as a part of Indonesian’s economy as a whole. These are two instruments of reforms in economy as a corrective efforts to the pre-reform business pattern.
In this ten years, the effectiveness of the suggestions and advice on the basis of the analysis and decisions delivered by KPPU to the government cannot be separated from significant roles of Ministries, Sectoral Regulators and Local Governments. ”In many things, it seems that the suggestions will be effective as there is a sufficient willingness from the regulator to always consider fair competition, particularly Law Number 5 Year 1999 in making every economic policy”, Chairman of KPPU, Tresna P Soemardi, said. Even, according to him, ”It is strengthened by the expansion of the authorities of KPPU to participate in supervising the implementation of the partnership agreement pursuant to Law Number 20 Year 2008 concerning Micro, Small and Middle Scale Businesses (UMKM).
It constitutes a positive note that in this case KPPU invites some panelists to discuss the issue in a national seminar on ”KPPU and Competition Policy in National Economic System” as a forum for the agenda reflection and identification in a bid to develop better competition policy. The aforesaid panelists are Mahendra Siregar (Vice Minister of Trade), Supriadi (Expert Staff on Business Competition of Coordinating Minister for Economy), Faisal Basri (Economic Observer), Benny Pasaribu (Commissioner of KPPU) and Hariadi B Sukamdani (Vice General Chairman of Indonesian Chamber of Commerce for Monetary, Public Policy and Fiscal Affairs) and Nawir Messi (Commissioner) as the moderator.
This seminar will discuss on the roles of KPPU in developing business policy in national economic system in period of ten years, including the collective understanding on the public question on whether subsidy is justified in the business competition regime, whether trading policy means the government shall interfere in the smooth distribution or price reasonability, whether fair business competition policy is identical with business liberalism.
As understood, in performing its tasks in enforcing Law Number 5 Year 1999, in addition to the action in the form of case handling and sanction imposition, KPPU also delivers suggestions and advice to the government. It is recorded that 81 suggestions and advice have been delivered by KPPU to the Government.
| Years | Number of Suggestions | Industries in Indonesia |
| 2001 | 4 | energy, land transportation, air transportation |
| 2002 | 2 | food and beverages, land transportation |
| 2003 | 10 | seaport, banking, air transportation, film, electricity, carbon black, retail, animal husbandry |
| 2004 | 3 | sugar, shipping and commercial paper |
| 2005 | 12 | goods and service procurement, insurance, telecommunication, electricity, migrant workers, agriculture |
| 2006 | 5 | assessment services, printing, salt, medical equipment |
| 2007 | 11 | retail, information technology, hajj management, books, postal services, agro-industry, sea transportation, construction services, land transportation |
| 2008 | 17 | seaport, oil and natural gas, transportation, broadcasting, detergent, retail, mining, telecommunication |
| 2009 | 12 | LPG, animal husbandry, telecommunication, cacao, land transportation, cooking oil, fuel surcharge, plantation, seaport, small and medium enterprises |
| 2010 | 5 | management of Jakarta Fair (PRJ), land transportation insurance, catching fish, cluster fishery and retail |
Out of these suggestions, 60% or 47 out of 81 suggestions and advice delivered by KPPU has been agreed and followed by the Government. Therefore, the experiences within a period of 10 years in performing the mandate given by the Law, KPPU sees the importance of cooperation and coordination with other law enforcing bodies within the context of law enforcement, and Ministries or other regulators as well as local governments in the framework of competition policy. In other words, it can be said that the performance of the KPPU’s tasks will not be successful without the supports of other government institutions.
In addition, KPPU realizes that the casuistic law enforcement will only provide great effect to the improvement of business system if supported by proper business competition policy . KPPU hopes this forum will reaffirm the importance of the coordination between KPPU and regulator either at central and local levels in developing fair business competition in the national economic system.
In this framework, KPPU also hopes that in the future, it will be established as follows:
- understanding on fair business competition policy among stakeholders both at central and local levels;
- sustainability of communication well established so far;
- coordination with government authorities and regulator;
- standard mechanism of cooperation with government authorities and harmonization mechanism of competition policy into the government’s policy;
Therefore, the national business competition law and policy can develop not only to fulfill the mandate of the law, but due to the presence of collective coordination and awareness on the importance of fair business competition in a bid to strengthen the pillar of the national economy.
