The Principle of Fair Business Competition in SOE Monopoly

Abstract

This research was conducted based on the monopoly regulation and/or the activity center by SOE (StateOwned

Enterprises) which is regulated in Article 51 of Law Number 5 of 1999 about Prohibition of Monopolistic Practices and Unfair Business Competition. According to the BCSC (Business Competition Supervisory Commission) regulation Number 3 of 2010, the implementation of SOE monopoly must be done by regarding the principles of fair business competition. Meanwhile, monopoly and principles of fair business competition have an opposite concept so in its implementation gives rise to different interpretations among business actors. This research used statutory approach, conceptual approach, and comparative approach. The purpose of this research is to find the principles that must be implemented in SOE monopoly so it can find the suitability between SOE monopoly arrangement in Article 51 of Law Number 5 of 1999 and the principles of fair business competition.