Jakarta, ID
Monday, May 28 2012, 15:59 PM

Jakarta

City plans to revise bylaw amid monopoly ruling by KPPU

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The city administration will revise the 1991 bylaw on the Jakarta Fair after the Business Competition Supervisory Commission (KPPU) announced last month that the running of the annual Jakarta Fair over the last five years was monopolized by the Jakarta International (JI) Expo, an official said Thursday.

City secretary on economic affairs Mara Oloan Siregar said that the administration would revise articles on the bylaw concerning rights and obligations as well as positions of the parties involved in the Jakarta Fair.  

Mara refused to comment when asked if there would be a tender to choose the organizer of the Jakarta Fair.

The commission said that the administration should organize a tender to determine an event organizer.

Under a 1991 bylaw on the Jakarta Fair, the event is to be held at Kemayoran Fairground in Central Jakarta, once owned by the Jakarta International Trade Fair Cooperation.

In 2003, the location for the event was sold to the JI Expo from the fair cooperation.

The administration now holds 13 percent of ownership of the area, while the JI Expo owns the remainder.

KPPU said that since the transaction only involved the land and not the event’s brand, there should be a tender process to decide the event organizer.

Jakarta International Expo Managing Director Budi Santosa said that his company would continue to hold the annual Jakarta Fair despite accusation of monopoly.

Budi Santosa said that his company would hold the Jakarta Fair this year. He said he had not heard from the city administration on the plan to change the bylaw, therefore his company was preparing for the event, to be held mid-year.

Budi said that the bylaw regulated that the event be held at the JI Expo.

“Changing the Jakarta Fair’s location means the law and bylaw need to change. The person with authority is in the hands of the Indonesian government and the Jakarta administration,” he said.  

The Jakarta Fair was first held in 1968 at the National Monument (Monas) park grounds. The Foundation of Exhibition and Jakarta Fair Organizer ran the event. After moving places, Kemayoran became it permanent location, with the stipulation of the 1991 bylaw.