COMPETITION ADVOCACY IN INDONESIA
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1 APEC Training Course on Competition Policy 8 10 August 2006, Bangkok, Thailand COMPETITION ADVOCACY IN INDONESIA by : Andi Zubaida Assaf KOMISI PENGAWAS PERSAINGAN USAHA (Commission for The Supervision of Business Competition, Indonesia)
2 ADVOCACY PROGRAM Background - Advocacy Framework - Organization Structure Activities Challenges and obstacles Promote competition advocacy 1
3 Background To encourage the public to be actively involved in supervising the implementation of Law no.5/1999 To give shape to an efficient Indonesian economy through the creation of a conducive business climate 2
4 Background (Advocacy framework) LAW No. 5/1999 and KPPU All Stakeholders Seminars Trade Expo Journalist, Business Actors, Academician, Judge Forums Workshops 3
5 Background (Organization Structure) DIRECTORATE OF COMMUNICATION Division of Advocacy Division of Publication Division of Inter-Institution Cooperation 4
6 Activities KPPU conduct the dissemination of information through socialization and communication program These programs are directed to all stakeholders (business actors, government, universities, law consultant, parliaments) To Socialize KPPU 5
7 Activities (vision and mission of KPPU) Vision of KPPU : The establishment of fair business environment, equal in business opportunity, fair and efficient in economic aiming toward of welfare society Mission of KPPU : Supervise the implementation of Law No.5/1999, then it can be convinced that enforcement of Law No.5/1999 can be run fair, transparent and effective Promote internalization of business competition value to business actors, in effort to apply business competition principals in their business strategy through socialization of the advantages and the important of business competition and expected in increasing business actors awareness to the important of business competition Urge competition value in government policy as mandated in Article 35 of Law No.5/1999, one of main duties of the Commission is provide suggestion and consideration to government policy related to monopolistic practice and unfair business competition. One of effective ways to enforce business competition values, instead of by enforcing case, is through advocacy of business competition, mainly to government as the regulator or as the decision maker in regulations, and also advocacy to public 6
8 Activities (Supporting activities) To increase the stakeholders knowledge, KPPU will performs Public Service Advertisement Due to the participation of journalist in Journalist Forum, that support KPPU to change the behavior of business actors and establish fair competition climate through their media coverage 7
9 Activities (Advocacy Materials) Developed KPPU Annual Reports to the President and Parliament Developed Newsletter (quarterly) Provide the socialization materials (electronics and printed) 8
10 Challenges and Obstacles The implementation of Law No.5/1999 does not only benefit consumers sometimes is widely misunderstood Limited understanding and concern of the Judges on Competition Law enforcement had cancelled effectiveness of KPPU Decisions in the appeal process Different perception of Law No.5/1999 9
11 Promote Competition Advocacy Stakeholders Partner of KPPU - Getting support in term of Institutional and Competition related issues Develop common understanding of Competition Issues Getting support and input from the Parliament in order to enforce KPPU duties and authorities effectively as mandated in Law No. 5/
12 Key Success Getting support from : Parliament, Government, Academician and Media Getting support from partner international agency and donor countries such as : GTZ, JICA, USAID, FNS, UNCTAD, New Zealand and Australia Commissioner Member is a selected person who is fully dedicated and known as public figure, for example they are from academician The media played an important role in determining the success of advocacy activities 11
13 Key Success (support from parliament and government) Political will and Budget Issue Success of Advocacy is reflected from budget allocated for KPPU that is significantly increasing every budgeting year. This year, KPPU s budget allocation is double from last year. Budget allocation has an important role in improvement and KPPU s productivity. KPPU s Case Statistic in period of shows : 450 Reports 42 Decision 4 Cases strengthened by Supreme Court s Decision 12
14 Thank You
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