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The Business Competition Supervisory Agency (KPPU), the
national antimonopoly watchdog, has issued about 50 rulings since its
establishment in 2000, but has been unable to enforce them all due to a
lack of the necessary powers, says the agency's chairman, Muhammad
Iqbal.
Speaking in Jakarta on Thursday, Iqbal said that given this legal
weakness, many of the rulings, especially those imposing fines on firms
that violated the 1999 Monopolies Law, could not be enforced.
From its establishment in 2000 until the end of 2006, the agency handed
down about 50 rulings on unfair business practices.
About 10 of the rulings imposed fines, while the others mostly
concerned the annulling of contracts.
"However, most of the fines imposed have not been collected as the
agency has no power to force violators to pay up," Iqbal told reporters
during an event held to announce the agency's new executive board
lineup for the five years up until the end of 2011.
The agency's 13-panel board is made up of Iqbal (chairman), M. Nawir
Messi (deputy chairman), and ordinary members Syamsul Maarif, Erwin
Syahril and Tadjuddin Noer Said, who have been reappointed for second
term, and newly appointed ordinary members Ahmad Ramadhan Siregar,
Benny Pasaribu, Yoyo Arifardhani, Didik Akhmadi, Sukarmi, Anna Maria
Tri Anggraini, Tresna Priyana Soemardi and Dedie S. Martadisastra. The
posts of chairman and deputy chairman are rotated every year.
The fines imposed by the KPPU normally amount to at least Rp 1 billion.
The KPPU estimates that more than Rp 10 billion in fines are currently
still outstanding.
In order to make its rulings more effective, the KPPU is currently
preparing a proposal for the amendment of the legislation so as to give
the agency the power to enforce its rulings.
Besides the proposed amendment of the legislation, the agency will also
work hand-in-hand with other state agencies so as to ensure the
upholding of its rulings.
"One concrete step would be to strengthen the coordination between the
KPPU and the other stakeholders, especially with the Coordinating
Ministry for Economy, Ministry of Finance and Bank Indonesia," he added.
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