PPIM FEB UI Public Lecture, “The Impact of the Business Competition Law on Competition and Company Strategy”


PPIM FEB UI Public Lecture, “The Impact of the Business Competition Law on Competition and Company Strategy”

Nino Eka Putra ~ PR of FEB UI

DEPOK – (23/10/2020) The FEB UI Postgraduate Program in Management Science (PPIM) held a Public Lecture, with the topic “The Impact of Business Competition Law on Competition and Company Strategy” with Dr. Guntur Syahputra Saragih, M.S.M., Commissioner of the Business Competition Supervisory Commission (KPPU) as a resource person and moderated by Sari Wahyuni, Ph.D., Lecturer in Strategic Management, PPIM FEB UI also President of the Indonesia Strategic Management Society. The lecture was opened by Prof. Dr. Irwan Adi Ekaputra, Chair of the PPIM FEB UI Study Program, on Friday (23/10/2020).

Guntur Syahputra Saragih explained that the ethics or norms of business competition are regulated in Article 33 of the 1945 Constitution, which states that the economic process will occur in one or more units which have the characteristics of kinship. The elements of co-living, joint efforts for the common good, equal distribution of the results of joint efforts are typical elements of kinship. Meanwhile, the said ethics or norms are also regulated in Paragraphs 1, 2, 3, 4, and 5.

The economy is based on economic democracy, hence prosperity for all. Therefore, production branches that  are important to the state and which affect the lives of many people must be controlled by the state. Otherwise, production falls into the hands of the powerful and the people are oppressed. Earth and water, as well as natural resources contained in the earth are the main elements of the people’s prosperity.

According to Guntur, KPPU also participates in supervising business competition based on Article 2 of Principles and Objectives, namely business players in Indonesia in carrying out their business activities based on economic democracy, taking into account the balance between the interests of business players and the public interest. Whereas Article 3, was compiled with the aim of safeguarding the public interest and increasing the efficiency of the national economy, to improve people’s welfare, create a conducive business climate, through regulating fair business competition, preventing monopolistic practices or unfair business competition, and creating effectiveness and efficiency in business activities.

For certain, not all are perfect, in it there are so many players with protagonist and antagonist roles. In addition, business is a collection of self-interests and does not need to be controlled, the most important thing is supervision to ensure that each player involved can control their own behavior. Businesses are not fully able to self-control, self-correct, let alone self-heal, but only able to adjust under supervision.

“In the future, we have homework, which is to find solutions to the composition of unhealthy business actors. We hope that businesses are competitive and ubiquitous. In addition, our homework to improve the ICOR (incremental capital output ratio) value based on the processed data source from Indef in 2018, showing that Indonesia’s score to create one output requires 6.3 inputs, is still lagging behind neighboring countries, such as Vietnam (5,2), Malaysia (4,6), Philippines (3,7), and Thailand (4,5),” Guntur closed his session. (hjtp)