Previously, the government had suggested to the House of Representatives’ working committee on the revision of the law to have the KPPU work under the Trade Ministry’s authority.

That suggestion had caused concern among businesspeople, who argued it could weaken the commission’s authority to ensure fair competition.

“The government and the House of Representatives’ [working committee] have agreed to keep the KPPU as an independent body that works under the president, not as part of the government working under the Trade Ministry’s authority,” Trade Minister Enggartiasto Lukita said recently during a visit to the KPPU offices in Central Jakarta.

He said the government respected the KPPU as an independent body that could help create a healthy business climate and was committed to strengthening the committee’s role.

Enggar also said that the KPPU would be involved in the ongoing discussion on the bill and was invited to provide insight to House members.

The revision of the law was expected to be completed this year.

Responding to Enggar’s statement, KPPU chairman Kurnia Toha lauded the government’s move, saying it could help the House design a bill that would strengthen the commission’s position as a law enforcement body.

Kurnia said the commission had several concerns about the revision that needed to be discussed to strengthen the KPPU’s role in creating healthier business competition in the country.

The first concern, he said, was for the KPPU to be able to supervise foreign enterprises outside the country, if their activities impacted Indonesia’s economy. Currently, the law only regulates businesses that are located in and do business in the country, as stipulated in Article 1 Paragraph 5 of the law.

The second concern, he said, pertained to pre-merger and acquisition notification of the commission.

Businesses would be obliged to announce merger and acquisition plans before execution, so that the KPPU could assess the plans and determine whether the corporate action could result in a monopoly or unhealthy competition.

The current law requires businesses that merge with or acquire shares of another enterprise to report to the KPPU within 30 days after the action. This policy, Kurnia said, had made the commission’s job more difficult, as it was hard to dissolve a merger or annul an acquisition.

The third aspect to consider, he went on, was to impose higher fines on businesses proven to have violated the law.

Although he did not mention the range proposed by the commission, he said the fine should be bigger than the current range of Rp 1 billion (US$69,560) to Rp 25 billion mandated by the law to create a deterrent effect.

KPPU commissioner Chandra Setiawan added that the commission would suggest to the House to include in the revision leniency provisions for cartel members acting as whistle-blowers, akin to the Corruption Eradication Commission’s (KPK) justice collaborator program.

“If cartel members decide to report their peers, we should be able to reduce their punishment as compensation,” he said.

Sutrisno Iwantono, the Indonesian Employers Association (Apindo) executive in charge of public policy, told The Jakarta Post that he agreed with some of the KPPU’s suggestions, such as the pre-merger and acquisition notification to prevent monopolization, as well as the higher fines.

However, he said, the leniency program might not be fitting for Indonesia because of the lack of enforcement in the procedural law in the country.

Although Apindo had not received an invitation to the hearing on the law at the House, Iwan said the association was willing to provide insight on the bill, and suggested that the law clearly separate the roles of an investigator and a judge in the KPPU to prevent unjust verdicts. (ris)

Popular

Great Barrier Reef hit by record bleaching

Govt to undo latest curbs on personal imports

Middle East on edge as Israel and Iran trade threats