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Strengthening the anti-trust commission to enhance fair competition
Ensuring secure tenure for KPPU commissioners would protect the institution from political interference, allowing commissioners to make decisions based on sound legal and economic principles.
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The Business Competition Supervisory Commission (KPPU) office building on Jl. Juanda, Central Jakarta. (Private collection)
H
ouse of Representatives Commission VI overseeing manufacturing, investment and business competition elected on Nov. 23 nine members to the Business Competition Supervisory Commission (KPPU) for the 2023-2028 period.
A robust and competitive business environment is vital for economic growth, innovation and consumer welfare in Indonesia. However, challenges such as limited resources, complex legal procedures and political interference pose obstacles to the KPPU's effectiveness.
Established in 1999, the KPPU enforces Law No. 5/1999 on the prohibition of monopolies and unhealthy business competition. Its duties include investigating monopolies, advising on competition policy, conducting research and monitoring mergers. Despite this mandate, challenges such as limited resources and public awareness persist, hindering its ability to enforce competition law effectively.
Adequate funding is crucial for effective investigations and outreach programs. Expanding staffing levels will allow for better handling of cases and increased public outreach.
The KPPU's effectiveness hinges on its financial capacity. Adequate funding is crucial for conducting thorough investigations, implementing outreach programs to educate the public and addressing emerging competition concerns. A constrained budget severely limits the KPPU's ability to fulfill its mandate, and thus, an increase in funding is imperative.
In addition to financial resources, expanding the KPPU's staffing levels is equally essential. The current workforce is insufficient to handle the growing number of cases and the increasing complexity of competition issues. By expanding the workforce, the KPPU can allocate more personnel to investigations, legal proceedings and public outreach activities. This proactive approach is vital for addressing the multifaceted challenges in the realm of fair competition.
Regular training programs will keep staff updated on competition law, economics and investigative techniques. Specialized expertise development, especially in areas like economics and finance, is essential.
