Legislator Pushes for Amendment of Law No. 5 of 1999 to Eliminate Predatory Pricing
Member of Commission VI of the Indonesian House of Representatives (DPR), Darmadi Durianto, raised concerns about monopoly issues and fair competition. He pointed out that “predatory pricing” is one of the root causes undermining healthy competition across various sectors. According to Darmadi, this issue arises partly because Indonesia’s government often struggles to control illegal imports.
Darmadi warned that without regulatory improvements, including revisions to Law No. 5 of 1999 on the Prohibition of Monopolistic Practices and Unfair Business Competition, illegal imports may remain unchecked. If ignored, predatory pricing will become more rampant, making it increasingly difficult for the Indonesian economy to sustain, grow, and develop.
The textile industry in Indonesia has already been severely impacted by this issue. Over the past four years, many textile companies have struggled to survive, including PT Sri Rejeki Isman Tbk. According to a report from the Ministry of Cooperatives and SMEs in June 2024, illegal textile imports have led to annual state revenue losses estimated at IDR 6.2 trillion.
Darmadi made these remarks during a Public Hearing of Commission VI DPR RI with Indonesian economist Dr. Ir. Benny Pasaribu, MEc., PhD, as part of discussions on amending Law No. 5 of 1999 at the Nusantara I Building, DPR RI, Senayan, Jakarta, on Monday (11/11/2024).
“Predatory pricing and illegal imports are difficult to eradicate. If left unchecked, even large companies may go bankrupt. This issue goes beyond Regulation No. 8; it’s largely due to illegal imports, and it’s incorrect to place sole blame on the regulation,” Darmadi stated.
The PDI-Perjuangan Party politician is advocating for an amendment to Law No. 5 of 1999. Additionally, he supports strengthening the authority of the Business Competition Supervisory Commission (KPPU). In his view, KPPU should not only monitor but also enforce the law to create a healthier business environment.
“Hopefully, with this new leadership period, the amendment of Law No. 5 of 1999 can be included in the 2025-2029 National Legislation Program,” he concluded.
Discover more
