KPPU to investigate Caltex piping project

The Business Competition Commission (KPPU) will investigate alleged monopoly practices at the tendering of the Caltex Pacific Indonesia's piping project.

KPPU chairman Bambang P Adiwiyoto said that his commission would start its official works on Sept. 5 that it would directly work on a number of reports or complaints about monopoly practices.

"After KPPU becomes officially operational, we will investigate a number of cases form incoming reports. There are three cases that we will investigate soon," he said.

The three cases include the Caltex's piping project, the Indomaret chain, the importation of soybeans.

But Bambang could not explain the nature of alleged monopoly in the three cases, noting that his commission would need to investigate them first.

The establishment of KPPU has been mandated by the Anti-Monopoly Law, to ensure fair business competition in the country.

"The commission will never hesitate to take stern measures to uphold the Anti-Monopoly Law because only by this the integrity of KPPU will be upheld," he said.

Bambang also said that his party would also persuade a number of state enterprises that hold monopoly over certain products or services to review their business practices to create a fair business competition.

Nevertheless, Bambang acknowledged that his commission would not be able to eliminate monopolistic practices overnight. It would take between 10 years and 20 years to eliminate monopoly and create fair business competition environment. (*)