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Competition Policy in Indonesia and the New Anti-Monopoly and Fair Competition Law

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  • Thee Kian Wie

Abstract

This paper explores the role of competition policy in shaping a business environment that will encourage firms to improve their efficiency and competitiveness. After discussing the scope and objectives of competition policy, and whether a liberal trade and investment regime can substitute for, or should complement, a competition law, the paper offers an assessment of Indonesia's new competition law. Its shortcomings include a serious lack of clarity about objectives and a confusion between objectives and the means to achieve them; a failure to distinguish between various kinds of monopoly; a tendency to prohibit certain activities and agreements between firms without a clear analysis of the underlying economics involved; unnecessary and counterproductive exemptions from the provisions of the law; and failure to confront the reality that the principal obstacle to competition in the past has been unwarranted government intervention in markets.

Suggested Citation

  • Thee Kian Wie, 2002. "Competition Policy in Indonesia and the New Anti-Monopoly and Fair Competition Law," Bulletin of Indonesian Economic Studies, Taylor & Francis Journals, vol. 38(3), pages 331-342.
  • Handle: RePEc:taf:bindes:v:38:y:2002:i:3:p:331-342
    DOI: 10.1080/00074910215540
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    Citations

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    Cited by:

    1. Michael T. Rock, 2003. "The Politics of Development Policy and Development Policy Reform in New Order Indonesia," William Davidson Institute Working Papers Series 2003-632, William Davidson Institute at the University of Michigan.
    2. Jacob, J., 2004. "Late industrialisation and structural change: the Indonesian experience," Working Papers 04.18, Eindhoven Center for Innovation Studies.
    3. Jacob, J. & Meister, C., 2004. "Productivity gains, intersectoral linkages, and trade: Indonesian manufacturing, 1980-1996," Working Papers 04.14, Eindhoven Center for Innovation Studies.
    4. Thee Kian Wie, 2010. "Technology and Indonesia’s Industrial Competitiveness," Working Papers id:3295, eSocialSciences.
    5. Jojo Jacob & Christoph Meister, 2005. "Productivity gains, technology spillovers and trade: Indonesian manufacturing, 1980-96," Bulletin of Indonesian Economic Studies, Taylor & Francis Journals, vol. 41(1), pages 37-56.
    6. Tulus Tambunnan, 2007. "Trade and Investment Liberalization Effects on SME Development: A Literature Review and a Case Study of Indonesia," Working Papers 4207, Asia-Pacific Research and Training Network on Trade (ARTNeT), an initiative of UNESCAP and IDRC, Canada..

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