Fair Play Fair Prices Fair Choice

Similar documents
Address on the ASEAN Economic Community 2015 by Dato Timothy Ong in Manila on June 26 th 2014

Trade, informality and jobs. Kee Beom Kim ILO Regional Office for Asia and the Pacific

Development in Competition Law and Policy (Indonesia Progress) *

CPI Antitrust Chronicle February 2013 (1)

Science and Technology Diplomacy in Asia

Current Development Cooperation (DC) in the ASEAN Region

AKHILESH TRIVEDI PREPAREDNESS OF SMES TOWARDS AEC : A CASE STUDY OF TRAVEL AGENTS IN BANGKOK

Asean Economic Community. By Muhammad Dhafi Iskandar

GOVERNANCE: How Is It Connected To Sustainability? Mr Thomas Thomas CEO, ASEAN CSR Network

ASEAN 2015: OPPORTUNITIES AND CHALLENGES

ASEAN COMMUNITY CORRECTIONS

Statement by. Mr. Danny Rahdiansyah. First Secretary. of the Permanent Mission of the Republic of Indonesia

Protocol to Amend the Framework Agreement on the ASEAN Investment Area Ha Noi, 14 September 2001

Trans-Pacific Trade and Investment Relations Region Is Key Driver of Global Economic Growth

ASEAN WHAT IS ASEAN? A regional grouping that promotes economic, political and security cooperation among its member states.

Competitiveness and Value Creation of Tourism Sector: In the Case of 10 ASEAN Economies

EXECUTIVE SUMMARY. Shuji Uchikawa

Environmental Justice: ADB and Asian Judges for Sustainable Development. OGC Law and Policy Reform Program

ASEAN-INDIA STRATEGIC PARTNERSHIP AND DESIGN OF FUTURE REGIONAL TRADING ARCHITECTURE

ASEAN AGREEMENT ON REGULATORY FRAMEWORK FOR TRADITIONAL MEDICINES

Southeast Asian Economic Outlook: With Perspectives on China and India Thematic focus: Narrowing development gaps 2013 edition

Increasing Access to Health Services for those living in Border Areas in the GMS

PROTOCOL TO IMPLEMENT THE TENTH PACKAGE OF COMMITMENTS ON AIR TRANSPORT SERVICES UNDER THE ASEAN FRAMEWORK AGREEMENT ON SERVICES

REITERATING their commitment to accelerating the liberalisation of intra-asean trade through AFTA using the CEPT Scheme;

Making the Bali Declaration Binding

Charting Indonesia s Economy, 1H 2017

Drivers of Regional Integration in ASEAN

The BIGGEST in South East Asia!

5 th International Federation of Surveyors Regional Conference for Africa

FRAMEWORK FOR COMPREHENSIVE ECONOMIC PARTNERSHIP BETWEEN THE ASSOCIATION OF SOUTHEAST ASIAN NATIONS AND JAPAN

ASEAN Guidelines for Harmonisation of Standards

German Aid for Trade 5th GTI Trade Facilitation Committee Meeting Changchun, PRC, 02 September Seite 1

Charting Cambodia s Economy

FORM 2-SITUATION UPDATE

ASEAN-PAKISTAN JOINT DECLARATION FOR COOPERATION TO COMBAT TERRORISM

Among ASEAN countries, Thailand ranks 3 rd, followed by Singapore and Malaysia.

Report of the Tripartite Seminar on Strengthening Social Protection in the ASEAN region

Track Session II Realizing ASEAN s Full Human Capital Potential Through Free Flow of Labor

IN COOPERATION WITH BUSINESS SENTIMENT SURVEY 2015

2002 PROTOCOL 9: DANGEROUS GOODS

China ASEAN Relations: Opportunities and Challenges for Development

REFERENCE NOTE. No.5/RN/Ref./March/2018 INDIA AND ASEAN

PROTOCOL TO AMEND THE FRAMEWORK AGREEMENT ON THE ASEAN INVESTMENT AREA

ASEAN-REPUBLIC OF KOREA JOINT DECLARATION FOR COOPERATION TO COMBAT INTERNATIONAL TERRORISM

Civil Enforcement and the Rule of Law: Effective Enforcement and the Role of Judicial Officers under Globalization and Economic Integration

Country Update. Manufactured products exports: Technical Barriers to Trade faced by exporters from Vietnam VIET NAM. Provided by

Charting South Korea s Economy, 1H 2017

TOWARD AN INTEGRATED ASEAN LABOR MARKET FOR ASEAN ECONOMIC COMMUNITY: PROSPECTS AND CHALLENGES FOR CLML COUNTRIES AND THE ROLE OF TAIWAN

STRATEGIC PLAN OF CUSTOMS DEVELOPMENT : INTEGRATION AND MODERNISATION OF ASEAN CUSTOMS FOR ESTABLISHMENT OF THE ASEAN ECONOMIC COMMUNITY BY

The situation of trade relation between Vietnam and ASEAN

Protocol Regarding the Implementation of the CEPT Scheme Temporary Exclusion list. Singapore, November 2000

Human Development Index: Enhancing Indonesian Competitiveness in ASEAN Economic Community (AEC)

2018 Planning summary

ASEAN Emerging Growth, Opportunities & Challenges

Investing in ASEAN asean

CLMV and the AEC 2015 :

Strategy for regional development cooperation with Asia focusing on. Southeast Asia. September 2010 June 2015

Achieving Corporate Integrity

What. Who. When. Quantitative Survey Sample and Methodology. Quantitative study conducted using SONAR JWT s online research tool

RECOGNISING the importance of capacity building through human resource development to face challenges of globalisation; and

International Business

Report. This version available at: Originally available from LSE IDEAS. Available in LSE Research Online: May 2012

2. The Meeting was officially opened by H.E. Datuk Seri Dr. S. Subramaniam, Minister of Health of Malaysia.

Decent Work for All ASIAN DECENT WORK DECADE

Southeast Asia. Overview

KOREA S ODA AND SOUTHEAST ASIA

Session 12. International Political Economy

International Political Economy

ASEAN Cooperation on Trade in Health Services. Prince Mahidol Award Conference 2008

CHAPTER 1 GENERAL PROVISIONS. Article 1.1 Objectives. The objectives of this Framework Agreement are to:

DRAFT AGREEMENT BETWEEN UNESCO AND THE GOVERNMENT OF THE REPUBLIC OF INDONESIA REGARDING THE CREATION OF A REGIONAL CENTRE FOR HUMAN

Charting Australia s Economy

International Business Global Edition

Statement by. H.E. Ina H. Krisnamurthi. Ambassador/Deputy Permanent Representative. of the Permanent Mission of the Republic of Indonesia

Indonesia and The Implementation of ASEAN Economic Community

Cooperation on International Migration

Charting Singapore s Economy, 1H 2017

Mizuho Economic Outlook & Analysis

Hinrich Foundation Sustainable Trade Index Hong Kong overview

Overview of Red Cross Red Crescent in South-East Asia

1. East Asia. the Mekong region; (ii) environment and climate change (launch of the A Decade toward the Green Mekong. Part III ch.

AGREEMENT TO ESTABLISH AND IMPLEMENT THE ASEAN SINGLE WINDOW

Partner. Published By. Malaysian-German Chamber of Commerce and Industry (MGCC) Address

ZiMUN 2017 General Assembly Research Report

Look East and Look West Policy. Written by Civil Services Times Magazine Monday, 12 December :34

The status quo of money transfers across ASEAN

ASEAN Internet: ITU Case Studies

INPUTS AND MATERIALS. Expert Hearing and Workshop Project Management of Cross-Border Cooperation: European Experiences

Proliferation of FTAs in East Asia

ASEAN PATENT EXAMINATION CO-OPERATION (ASPEC) PROGRAM IN VIETNAM

SINO-ASEAN ECONOMIC INTEGRATION AND ITS IMPACT ON INTRA-ASEAN TRADE

BCRC SEA S NEWS WHAT S BEEN GOING ON IN OUR REGION RECENTLY? NEWSLETTER OF THE BASEL CONVENTION REGIONAL CENTRE FOR SOUTH-EAST ASIA

Chapter 5: Internationalization & Industrialization

Creating an enabling business environment in Asia: To what extent is public support warranted?

VIETNAM FOCUS. The Next Growth Story In Asia?

Saowaruj Rattanakhamfu* Senior Research Fellow, Thailand Development Research Institute

Expanding the Number of Semi-skilled and Skilled Emigrant Workers from Southeast Asia to East Asia

INTRODUCTION The ASEAN Economic Community and Beyond

Understanding AEC : Implication for Thai Business MRS. SRIRAT RASTAPANA

Hinrich Foundation Sustainable Trade Index Country overview: Singapore

Transcription:

Fair Play Fair Prices Fair Choice Making business competition work for consumers Supported by:

Fair business competition benefits everyone Fair business competition is vital to protect consumers and ensure an efficient market economy. With clear rules on competition and effective enforcement, companies cannot collaborate to fix prices, collude in tenders, or unfairly exclude competitors. This benefits consumers, especially the poorest and most vulnerable, through lower prices, higher quality and greater choice. Fair competition also benefits companies and can save money in public procurement. It prevents smaller enterprises from being excluded from the market by larger and more powerful ones. By encouraging innovation and ensuring efficient resource allocation, competition also contributes to higher productivity, growth and employment. This benefits everyone in society. Lowering consumer prices, enhancing business competitiveness, and improving the national economy. Page 1

Driving digitalization I ve been using a mobile phone for over 10 years now and I ve noticed that the cost of communications have become cheaper. I often used to get cut off because I d run out of credit. This was frustrating and created a bad image for work. Now a top-up of IDR 100,000 is enough for me, and my three children. (Atiek, Master of Ceremony/MC) In 2007, the Indonesian Commission for the Supervision of Business Competition (KPPU) sanctioned six mobile telecommunications operators for cartel-like price-fixing in messaging services. As a result, several new operators entered the market, providing consumers with greater choice, and charges declined significantly from IDR 350 to IDR 100 per message. Total consumer savings were estimated to be IDR 1.6 trillion (approximately 100 million) between 2007 and 2009, and an important principle was established in a dynamic new market. With this landmark decision and fines of up to 77 billion IDR (approximately 4.8 million EUR), the KPPU sent a strong signal to the industry about the enforcement of the competition law. Today, Indonesia is one of the largest emerging digital economies. Online communication and commerce owe much of their popularity to convenience and reasonable costs, presenting new opportunities for consumers and businesses alike. I used to have to take buses because there was no other option if you couldn t afford taxis. Now, I can use my mobile phone to order a motorcycle taxi any time. This is more convenient because I don t have to wait, and it s cheaper sometimes. I feel safer too and it s much faster. (Dinda, Fresh Graduate) Mobile data used to be a luxury. Now, it costs almost nothing to keep in touch and up-to-date. We are just a click away from innovative services and can even make a living. (Atiek, Master of Ceremony/MC) Page 2

Keeping business in line with the law In the wake of the Asian financial crisis, the Indonesian government was committed to restructuring the economy and introducing market-based reforms. When the competition law came into force in 1999, much of the economy was dominated by highly concentrated industries, privileged state-owned enterprises, and inefficient firms protected by entry barriers. 1998-2000 With assistance from Germany, high-level consultations between Indonesian parliamentarians, policy-makers and German experts, led by a former President of the German Federal Cartel Office, were initiated to formulate the competition law. Until 2009, Germany continued this cooperation to implement the competition law and promote a wider competition culture, also among academics and business associations. Indonesia was the first country in ASEAN to enact a competition law. In the past 16 years, the Commission for the Supervision of Business Competition (KPPU) has handled 342 cases and issued numerous recommendations to improve policies in the transport, telecommunications and food sectors, among others. 2001-2009 2011-now Drawing on its longstanding experience, the KPPU is now evolving from a recipient to a provider of assistance. It has engaged in discussions regarding the emerging competition regimes in Cambodia, Lao PDR and Myanmar, and has received delegations from other ASEAN countries. Page 3

Keeping the wheels turning In early 2015, the Indonesian Commission for the Supervision of Business Competition (KPPU) sanctioned six tyre manufacturers that had formed a price-fixing cartel, with fines collectively adding up to IDR 150 billion (approximately 9.4 million). The KPPU had found evidence that through the trade association, the manufacturers had agreed to not compete on prices in order to maintain favourable market conditions, limit production and control distribution. The KPPU subsequently drafted new policy recommendations for the Ministry of Industry to encourage trade associations to comply with the competition law. It also found two giant motorcycle manufacturers guilty of conspiring on prices and overcharging. The case made headlines and struck a nerve with many Indonesians who rely on motorcycles for transport. I am getting a bit old and don t have much education, but I need to work so I can support my family. But I rely on my motorcycle for this, and running costs like tyres, and fuel costs, come straight out of my own pocket. You d be surprised how they add up. For me, every little saving is important. (Arief, Motorbike Taxi Driver) Page 4

Forging ahead together in ASEAN Acknowledging the importance of fair competition for international trade and regional integration, the ten Member States of the Association of Southeast Asian Nations (ASEAN) endorsed the ASEAN Competition Action Plan (ACAP) 2016-2025. The ACAP builds on an earlier commitment to introduce national competition laws in time for the establishment of the ASEAN Economic Community (AEC) in 2015. Unlike the European Union, ASEAN does not foresee the establishment of a supranational competition authority. Instead, ASEAN Member States will rely on national enforcement efforts and a consensus on how to address cross-border competition cases. However, this means that monitoring business practices can become complex, considering the diverse national legal and institutional frameworks. Sharing knowledge and transferring international best practices Since 2008, Germany has been instrumental in bridging the implementation gap between regional agreements and national policies on competition. This support to the regional competition agenda and individual Member States draws on the experiences and networks of longstanding bilateral cooperation with Indonesia. This includes facilitating knowledge transfer from the more advanced competition authorities, such as in Indonesia and Singapore, to the newer authorities in an ASEAN helps ASEAN approach. Page 5

Action across ASEAN Myanmar 2015 Lao PDR 2016 ASEAN was founded in 1967 and now has ten Member States. It aims to promote intergovernmental cooperation and facilitate economic, political and cultural integration. National competition laws were enacted on the dates below. National competition law in Indonesia was enacted in year 1999 Thailand 1999 Cambodia - draft Malaysia 2010 Singapore 2004 Vietnam 2004 Brunei Darussalam 2015 Indonesia 1999 Philippines 2015 $ POPULATION approximately 625 million WORLD RANKING 7 th largest economy GDP approximately US$ 2.4 trillion TRADE GROWTH 2007 TO 2015 US$ 700 billion $ FOREIGN DIRECT INVESTMENT IN 2015 US$ 121 billion Page 6

Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH Registered Offices Bonn and Eschborn GIZ Office Indonesia Menara BCA 46th Floor Jl. M.H. Thamrin No. 1 Jakarta 10310, Indonesia T +62 21 2358 7111 F +62 21 2358 7110 E giz-indonesien@giz.de I www.giz.de/indonesia www.facebook.com/gizindonesia @GIZIndonesia Photo: GIZ/Jefri Tarigan