TheJakartaPost
Please Update your browser
Your browser is out of date, and may not be compatible with our website. A list of the most popular web browsers can be found below.
Just click on the icons to get to the download page.
KPPU suspects violations as SOE executives hold multiple roles
The Business Competition Supervisory Commission (KPPU) found dozens of directors or commissioners at state-owned enterprises (SOE) held other positions in private companies in finance, insurance and mining industries.
Change Size
Business Competition Supervisory Commission (KPPU) commissioner Guntur Saragih (right) and KPPU economic director Zulfirmansyah (left) brief reporters on the sharp increase in face mask prices at a press conference in Jakarta on March 3. (JP/Eisya Eloksari)
T
he Business Competition Supervisory Commission (KPPU) is investigating potential violations of the Business Competition Law as the government allows commissioners at state-owned enterprises (SOE) to hold the same position at other companies simultaneously.
The SOE Ministry issued a new regulation in October that allows commissioners or members of a supervisory board at state-owned companies to hold a commissioner position in private companies at the same time.
The KPPU stated on Monday that the new regulation could amount to a violation of Article 26 of Law No. 6/1999 on the prohibition of monopoly practices and unhealthy business competition.
The law forbids holding a director or commissioner position in more than one company at once if the companies are in the same market, have a related business or control the largest share in certain markets.
“To prevent potentially unhealthy business competition as early as possible, the KPPU has coordinated and sent a recommendation to the SOE Ministry that essentially advises the ministry to revoke the provision that allows concurrent positions for commissioners and members of a supervisory board with commissioners in private companies,” the business watchdog said in a statement.
Read also: Corruption risk to Indonesia’s infrastructure push
In its preliminary investigation, the KPPU found that 31 directors or commissioners at SOEs held other positions in private companies in finance, insurance and investment industries, 19 directors or commissioners in the construction industry and 12 directors or commissioners in the mining industry.
