KPPU Proceeds with Investigation of Temasek Case

JAKARTA: The Business Competition Supervisory Commission (KPPU) on September 27, is going to complete its investigation of the alleged monopoly practiced by Singapore’s Temasek Group.

“The follow-up investigation will be completed on September 27. After that, we will have a commission meeting and will issue a ruling in early November,” revealed Chairperson of KPPU Mohammad Iqbal to Bisnis on the sidelines of the House of Representatives Commission VI working meeting recently.

According to him, early November was a deadline for KPPU to issue a ruling.

In the case of monopoly practices charged against Temasek, for owning stakes in Telkomsel and Indosat, KPPU made preliminary investigation on April 9 and completed it on May 22.

After that, KPPU proceeded with follow-up meeting on May 23 through August 16, which was later extended to September 27.

Member of the House Commission VI Nasril Bahar and Nusron Wahid asked parties outside KPPU to respect the ongoing process by not making any intervention. The result of the House Commission VI working meeting was to urge KPPU to complete the investigation as soon as possible.

KPPU itself admits the follow-up investigation actually had indicated possible monopolistic practice, but the commission quickly added that the ruling would not be drafted until this week.

In the meantime, Corporate Communication Director of STT Melinda Tan stated the company had repeatedly denied accusation of monopoly.

Not a cartel

In the meantime, Director of the Economic and Management Development Institution (LPEM) at the University of Indonesia Chatib Basri argued the evidences pointing to cartel practice were weak as similar practice was also committed by other operators in order to retain or attract customers.

He added that data and information on each operator’s cost structure were required to prove whether there was tariff cartel or not. On the other hand, it was hard to compare the cost structures due to their complexity.

“One study indeed shows Indosat and Telkomsel have similar tariff movements. However, we cannot quickly judge this as oligopoly as other operators also make similar tariff movements in order to retain customers,” he analyzed at a discussion titled Upholding Business Regulation in Globalization Era: The Case of the Telecommunication Sector in Indonesia held by the Center for Strategic and International Studies (CSIS) in Jakarta last weekend.

According to Head of the Economic and Management Development Institution at Padjadjaran University Ina Primiana, the development of the cellular industry in Indonesia recently showed the characteristics of oligopolistic market.

“Oligopolistic market is not bad as it happens naturally and also takes place in other countries. In the cellular industry in Indonesia, there is still possibility of the cellular industry lowering their tariffs, which will later benefit the customers,” Ina inserted. ( By Arif Pitoyo & Ismail Fahmi

Bisnis Indonesia
Selasa, 25 September 2007


    Leave a Reply

    Please log in using one of these methods to post your comment: Logo

    You are commenting using your account. Log Out /  Change )

    Google+ photo

    You are commenting using your Google+ account. Log Out /  Change )

    Twitter picture

    You are commenting using your Twitter account. Log Out /  Change )

    Facebook photo

    You are commenting using your Facebook account. Log Out /  Change )


    Connecting to %s

%d bloggers like this: