Abstract
Demonopolization policy towards PT. PLN (Persero) and PT. Pelindo (Persero) conducted by the Indonesian government is aimed at enhancing efficiency, the effectiveness of state-owned enterprises (SOEs), as well as global competitiveness. The rationale in determining the demonopolization policy towards the two SOEs is based on the concept of neo-liberalism market economy, which promotes efficiency and effectiveness on free market competition. The concept of neo-liberal economics is contrary to the concept of democratic economics. The concept of democratic economics based on the 1945 Constitution of the Republic of Indonesia prioritizes fair efficiency. It is the reason for the Constitutional Court to return monopoly rights to PT. PLN (Persero) as an electricity provider in Indonesia. The argue of monopoly policy or demonopolization policy of SOEs is the main problem that will be elaborated through normative research methods (documentary research) by using secondary data as the main data. Problem analysis was done by qualitative juridical through of statute approach, philosophy approach, and history of law approach. This paper provides the reason of the policy of monopoly exemption on SOEs business activities, as well as the foundation of SOEs demonopolization policy taking into consideration the constitutional basis of Article 33 of the 1945 Constitution. The concept of demonopolization of SOEs is a new one that has never been described in the Indonesian literature. As a result, the demonopolization of SOEs does not divert SOEs into private companies but rather attempts to present competitors to SOEs to be able to compete in fair competition. In another side monopoly of SOEs can be implemented towards managing important production branches that control the livelihoods of many people. It is evidence of the state’s role in ensuring the welfare of its people.
Highlights
The role of the state can be strengthened when it concerns the fulfillment of public services to its citizens and concerns the stability of state security, especially for sectors which is not capable to be undertaken by the private sector, and sectors involving important production branches and protecting the livelihood of whole society, a government with a reason for the protection of public interest can make a monopolistic effort3 through the establishment of SOEs as stated in Article 51 of Law No 5 of 1999 concerning Prohibition of Monopolistic practice and Unfair Business Competition and reinforced by the constitution of Article 33 of the 1945 Constitution of Indonesian paragraph (2) and (3)
PLN (Persero) as the state-owned power supply provider of Monopoly right is revoked based on the provisions of Article 9 paragraph (3) of Government Regulation No.14 of 2012 concerning Electricity Supply Business activity, subsequently returned by Constitutional Court Decision No.111/ PUUXIII/2015
The major problem of the enforcement of SOEs demonopolization by the government raises the assumption that there are no more important branches of production and concerns of the life of the people who need to get direct attention and management by the government, or even the economy based on fundamental norm of Indonesia (Pancasila) as mandated by Article 33 of the 1945 Constitution of Indonesia has a shift to economic liberalization
Summary
The establishment of state owned enterprises is a proof of state involvement in an. direct society towards unity. The role of the state can be strengthened when it concerns the fulfillment of public services to its citizens and concerns the stability of state security, especially for sectors which is not capable to be undertaken by the private sector, and sectors involving important production branches and protecting the livelihood of whole society, a government with a reason for the protection of public interest can make a monopolistic effort through the establishment of SOEs as stated in Article 51 of Law No 5 of 1999 concerning Prohibition of Monopolistic practice and Unfair Business Competition and reinforced by the constitution of Article 33 of the 1945 Constitution of Indonesian paragraph (2) and (3). The major problem of the enforcement of SOEs demonopolization by the government raises the assumption that there are no more important branches of production and concerns of the life of the people who need to get direct attention and management by the government, or even the economy based on fundamental norm of Indonesia (Pancasila) as mandated by Article 33 of the 1945 Constitution of Indonesia has a shift to economic liberalization These allegations will be addressed by focusing on a discussion that lays out a rationale that provides a justification argument about demonopolization policy or restores monopoly policy to SOEs in conducting their business activities. The paper will trace the rationale of revocation of monopoly rights to the SOEs Provider of Electric Power and SOE Port Service Provider by using the policy of demonopolization openly
Sign-in/Register to view highlights & summary Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
