The Business Competition Supervisory Commission (KPPU) held its first closed-door hearing with city administration officials on Wednesday to discuss the regulation behind the direct appointment of PT Jakarta International (JI) Expo as the organizer of the Jakarta Fair in Kemayoran, Central Jakarta.
"We are concerned with the event's organization, which seems to have been monopolized by one business since 2004. The company was also appointed without a bidding process," Ahmad Ramadhan Siregar, KPPU commissioner, told reporters after the meeting.
Assistant to the city secretary on economic affairs, Mara Oloan Siregar, confirmed the statement, saying the KPPU had asked for some information about how the regional regulation had been developed. But he declined to elaborate.
"They will also invite other parties like the City Council and JI Expo. Just ask the KPPU *for the details*," Mara said.
Ahmad said it was important to have a bidding process, as it would most likely lower the entrance fees and ultimately benefit the public wanting to attend the event.
He deemed the existing entrance fee too expensive for low-income Jakartans.
This year, the organizers are charging visitors Rp 15,000 (US$1.50) on week days and Rp 20,000 on weekends.
The fair, which is held from June 11 to July 12, is an annual event celebrating the city anniversary that falls on June 22.
"This celebration is supposed to be for everybody. But many people cannot afford to bring along their whole family because of the high fee," he said.
Ahmad said the officials told him the regional regulation No 12/1991 on event management stated the fair should be held in Kemayoran Fairground, which is owned by the city and JI Expo.
In the past, the fair was held in Medan Merdeka Square, in the National Monument grounds, which is also in Central Jakarta, prior to the Kemayoran venue.
He said the location should not restrict the administration from holding a bidding process to determine who would organize the event.
"The tender's winner can rent the venue to hold the event instead," he said.
JI Expo granting the administration a 13 percent share in the company should not automatically give the same company the right to organize the festival, he added.
Ahmad admitted the regulation to appoint the JI Expo as the fair's organizer had been made long before the issuance of Law No. 5/1999, which prohibits any monopolistic practices and unfair business competition.
"That's why the KPPU is suggesting the City Council revise the regulation to involve more parties in the bidding process.
"We just don't want a company who is favored by any regulation to run unfair business practices. There are no issues if the company wins the bidding process. The thing is, JI Expo doesn't own the event," he said.
He said the commission had given its feedback to the City Council last year. But the council did not reportedly address any of the comments.
