Natural Monopoly or Monopoly by Law for State Owned Enterprises

Business Law Program, Law Department, Faculty of Humanities, Bina Nusantara University, Jakarta, Indonesia 11480

Abstract

State - Owned Enterprises which were formed on the basis of the mandate of Article 33 of the 1945 Constitution of the Republic of Indonesia, in their journey of carrying out activities in various business fields obtain purchases to carry out monopolies. This exception is further strengthened by Article 51 of Law Number 5 of 1999 concerning the Prohibition of Monopolistic Practices and Unfair Business Competition . In general, there are natural monopoly and monopoly by law. This paper contains a review of the proper implementation of monopoly for State-Owned Enterprises (SOE’S), as well as business policies implemented by State-Owned Enterprises (SOE’S) so as not to violate provisions related to business competition, the policies referred to are Clusterization, Synergy and Holding. So that in the end the right formula will be found regarding Monopoly Rights from State-Owned Enterprises (SOE’S) correctly, so that both these state-owned enterprises progress because of their Quality (Natural Monopoly) and not only rely on constitutional provisions which provide rights for state-owned enterprises to Monopoly by Law.