KPPU must be Cautious When Exercising its Authority

Abdul Razak Asri, Robert Sidauruk
 
Under the Indonesian Antitrust Law, the Commission for the Supervision of Business Competition (KPPU) is the statutory entity with jurisdiction over antitrust cases and competition related matters. The institution, for instance, can conduct investigations and at the same time decide whether or not a business arrangement is anti-competitive.
 
Given the KPPU’s broad authority under the law, the Government has cautioned it to always be cautious in performing its functions and responsibilities. Represented by Chairul Tanjung, the Coordinating Minister for Economic Affairs, the Government expressed its desire to ensure that the KPPU does not negatively impact on national economic development in its pursuit of maintaining fair business competition.
 
“Like the famous law adages says ‘let one hundred guilty be acquitted but one innocent should not be convicted’”, said Mr. Tanjung during his speech at a ceremony celebrating KPPU’s 14th birthday in Jakarta last Thursday.
 
Mr. Tanjung also highlighted that the KPPU is not only an institution that should focus on oversight, in addition it must also actively stimulate business by supporting a conducive investment climate in Indonesia.
 
According to Mr. Tanjung, one of the biggest challenges for the KPPU in realizing this objective is to encourage local businesses in welcoming the ASEAN Economic Community (AEC).
 
“The KPPU is not only obliged to supervise the market but should also encourage businesses to be more efficient and produce high quality products so they can compete in a global market,” added Mr. Tanjung.
 
After 14 years overseeing business competition and handling antitrust cases, Mr. Tanjung applauded several of the positive contributions that KPP has made. For instance, the KPPU has positively impacted on the aviation industry and made it more competitive following its decision on fuel surcharges. In the near future, Mr. Tanjung urged the KPPU to be more focused on targeting cartel practices in the food sector as he believes that this sector closely relates to the lives of most people.
 
On the same occasion, M. Nawir Messi, KPPU’s Chairman, emphasized that KPPU has made real contributions to the Indonesian economy over the past 14 years. He also noted KPPU’s significant contribution to the aviation industry which has now become a competitive market. Mr. Messi informed that telecommunications sector is also currently moving in the same direction.
 
At the international level, Mr. Messi claims that KPPU is a role model for other countries in studying a fair market competition system. On that basis, Mr. Messi added that it is possible for the KPPU to become a “center of excellence”.
 
However, despite its positive achievements, Mr. Messi is of the view that the KPPU’s authority under the Antitrust Law is still limited, especially when handling cartel cases. He hopes that KPPU can have greater authority in the future so that its oversight of market competition can be more effective.
 
“The KPPU has limited authority, it does not have authority to seize, intercept communications, and search. These authorities are important to investigate cartels”, concluded Mr. Messi.
 
(hot/kc)
Abdul Razak Asri, Robert Sidauruk
 
Under the Indonesian Antitrust Law, the Commission for the Supervision of Business Competition (KPPU) is the statutory entity with jurisdiction over antitrust cases and competition related matters. The institution, for instance, can conduct investigations and at the same time decide whether or not a business arrangement is anti-competitive.
 
Given the KPPU’s broad authority under the law, the Government has cautioned it to always be cautious in performing its functions and responsibilities. Represented by Chairul Tanjung, the Coordinating Minister for Economic Affairs, the Government expressed its desire to ensure that the KPPU does not negatively impact on national economic development in its pursuit of maintaining fair business competition.
 
“Like the famous law adages says ‘let one hundred guilty be acquitted but one innocent should not be convicted’”, said Mr. Tanjung during his speech at a ceremony celebrating KPPU’s 14th birthday in Jakarta last Thursday.
 
Mr. Tanjung also highlighted that the KPPU is not only an institution that should focus on oversight, in addition it must also actively stimulate business by supporting a conducive investment climate in Indonesia.
 
According to Mr. Tanjung, one of the biggest challenges for the KPPU in realizing this objective is to encourage local businesses in welcoming the ASEAN Economic Community (AEC).
 
“The KPPU is not only obliged to supervise the market but should also encourage businesses to be more efficient and produce high quality products so they can compete in a global market,” added Mr. Tanjung.
 
After 14 years overseeing business competition and handling antitrust cases, Mr. Tanjung applauded several of the positive contributions that KPP has made. For instance, the KPPU has positively impacted on the aviation industry and made it more competitive following its decision on fuel surcharges. In the near future, Mr. Tanjung urged the KPPU to be more focused on targeting cartel practices in the food sector as he believes that this sector closely relates to the lives of most people.
 
On the same occasion, M. Nawir Messi, KPPU’s Chairman, emphasized that KPPU has made real contributions to the Indonesian economy over the past 14 years. He also noted KPPU’s significant contribution to the aviation industry which has now become a competitive market. Mr. Messi informed that telecommunications sector is also currently moving in the same direction.
 
At the international level, Mr. Messi claims that KPPU is a role model for other countries in studying a fair market competition system. On that basis, Mr. Messi added that it is possible for the KPPU to become a “center of excellence”.
 
However, despite its positive achievements, Mr. Messi is of the view that the KPPU’s authority under the Antitrust Law is still limited, especially when handling cartel cases. He hopes that KPPU can have greater authority in the future so that its oversight of market competition can be more effective.
 
“The KPPU has limited authority, it does not have authority to seize, intercept communications, and search. These authorities are important to investigate cartels”, concluded Mr. Messi.
 
(hot/kc)
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