Meet the Home Affairs Minister, KPPU suggests all local governments conduct competition policy assessments

Jakarta (18/03/23) - The Competition Supervisory Commission (KPPU) met with Minister of Home Affairs Tito Karnavian to explain the strategy to improve competition performance in encouraging the economy in all regions, especially through the use of competition policy checklists in the preparation and evaluation of economic policies in each local government. This was stated by the Chairperson of KPPU, M. Fanshurullah Asa, along with KPPU members in their meeting with the Minister of Home Affairs today, 18 March 2024, at the Ministry of Home Affairs Office in Jakarta.

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As is known, competition policy plays a significant role in increasing the productivity of the national and regional economies through the creation and supervision of regulations that do not distort the market, to control regional inflation. To support the adaptation of competition policy, KPPU has issued KPPU Regulation No. 4 Year 2023 on Providing Advice and Consideration on Government Policies Relating to Monopolistic Practices and/or Unfair Competition. Through this regulation, the government can seek advice and consideration from KPPU and use the competition policy checklist (DPKPU) to determine whether a policy has the potential to create unfair competition. Through the meeting, KPPU wants the assessment of competition policy through DPKPU to be carried out in all local governments. Furthermore, KPPU can also provide advice and consideration in ensuring smooth distribution to support the 4K inflation control strategy in the regions (price affordability, supply availability, smooth distribution, and effective communication).

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The performance of competition in the regions will be reflected in the Competition Index developed by KPPU. KPPU also expects this index to be one of the indicators in the Regional Government Governance Index (ITKPD) initiated by the Ministry of Home Affairs. Furthermore, success in competition performance will be appreciated through a joint award from KPPU and the Ministry of Home Affairs to the Regional Government.

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In addition, the KPPU Chairperson also invited the Ministry of Home Affairs to encourage the Micro, Small, and Medium Enterprises (MSME) Partnership Extension program through the participation of all Cooperative and SME Offices in all Regional Governments. In particular, through the formation of a joint team to facilitate counseling activities on the implementation of good partnerships with MSME players in the regions.

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Responding to these explanations, the Minister of Home Affairs welcomed and was ready to support various strategies proposed by KPPU related to improving the performance of local governments. ***