The Jakarta Post
28th Jan 2008
Following its latest management reshuffle, the Business Competition Supervisory Commission (KPPU) has vowed to continue to pursue healthy and fair business competition to better the country's investment climate.
"The KPPU will continue its 2007-2012 strategic plan and to build cooperation with international communities as it is crucial to lure international businesspeople to invest their money here," newly elected KPPU chairman Syamsul Maarif told The Jakarta Post on Sunday.
Last week, Syamsul, who also led the KPPU in 2002, 2005 and 2006, was elected KPPU chairman, replacing Muhammad Iqbal, while Tresna Priyana Soemardi was elected vice chairman, replacing M. Nawir Messi.
In its 2007-2012 plan, the KPPU aims to uphold the anti-monopoly law, promote healthy competition among businesspeople and build the KPPU as a credible and effective organization.
The KPPU was established in June 2000 as an anti-monopoly watchdog to safeguard and build a business climate that companies would feel safe in.
"In 2008, the KPPU will focus to oversee the price of staple foodstuffs, such as soybeans, milk and flour, because it is highly important to the people," Syamsul said.
The KPPU is currently investigating a possibility of a cartel-like practice between four soybean importers, which is considered to be an indication of price fixing.
"The KPPU will also continue to monitor big retailers so that their businesses will not squeeze small- and medium-sized suppliers, as well as traditional markets," he added.
In August 2005, the KPPU ruled that giant retailer Carrefour was guilty of imposing "minus margin" terms, in which a supplier should pay a penalty if it sold its products at higher prices than its supplier rivals.
Entering its eighth year since its establishment, the KPPU, while claiming to have put much effort into improving the country's investment climate, is often criticized by the business community.
The most recent criticism came after the KPPU ruled against Temasek Holdings in November 2007. In its ruling, the KPPU said Temasek were guilty of cross-ownership in two mobile telecommunications companies, PT Telekomunikasi Selular (Telkomsel) and PT Indosat, which led to a monopoly.
While Temasek had indirect shares in both companies, its lawyer objected to the ruling, saying that the company did not own majority shares in Telkomsel and Indosat.
Temasek, which owns a 54.15 percent stake in SingTel group, holds a 35 percent stake in Telkomsel, while Singapore Technologies Telemedia (STT) -- entirely owned by Temasek -- owns a 75 percent share of Asia Mobile Holdings, which holds a 41.9 percent stake in Indosat.
The Temasek cross-ownership case is currently being tried at the Central Jakarta District Court.
"Temasek has the right to file an objection," Syamsul said of the case. "The KPPU only considered that the price rate of mobile communications services was excessively high."
According to Syamsul, the country's mobile cellular operators have decreased their rates following the KPPU's ruling against Temasek.
He also said that to improve its performance, the KPPU has tried to develop relationships with other countries' anti-monopoly watchdogs.
"The KPPU needs to update its knowledge and adjust to the international community to upgrade its performance," said Syamsul. (adt)
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