Sabtu, 15 November 2014

East Timor Economy Competition Law, (monopoly)


When business activities are the driver of the country's economy, it is important to have a well economy competition law, as a regard of the fair trade or business activities. but sometime some countries are lack of that. let's take East Timor as an example.
Currently East Timor it self has not had the business competition law, by saying that i mean the law that made by the time since East Timor independence, although the law of business competition from the Indonesia era is available to be used. The problem is East Timor already made a regulation about competition law, but that law only covers prohibition of monopoly in the specific are which is included as a primary need, as rice, sugar, baby food, material constructions and some other that declare in Law no.4/2011 about Crimes of monopolization and speculation. By this law enters into force, we can see that the government only protects monopoly activities in the essential goods, by that people can easily interpret that monopoly is allowing in the products or service. It also means that Indonesian regulation on monopoly can not be applicated, due to avoid legal vacuum, East Timor stated in The parliament law no 1/2002, that as long as East Timor has not have law concerning that particular area, then if  Indonesia regulates that law (those laws are the law that enter into force from 1975 until 1999) and that law does not contradict with East Timor law and norme that law exist until East Timor has his own law.   Beside the government free market principal, as it declared in the constitution, by that the price is depend on market, although the government still has control for the essential goods and others that by law under the government protection. This condition made the others areas are possible to be monopolized, this for example happen to the aircraft. Never the less in this matter it is not fully the false of East Timor Government, the condition of one company willing to expand or not their business in east Timor is totally their right, because of that although, we acknowledge  the aircraft are doing monopoly, the government has nothing to do about that. Dili to Australia has been taken by north air Dili to Singapore by timor air Dili to Denpasar- Jakarta sriwijaya air.this condition  made the company have totally advantages to manage the price, and as the result the ticket is very expensive since there is no competitor. In this area is very difficult to resolve, is not only about drafting a law and then send it to approve by the parliament or council of minister but it also has to bee seen by economic condition in East Timor. So far the government can only protect the essential commodity for the best of all the civilization but in the future they have homework how to expand and make sure that not by the lack of the law someone using it for his own benefit. 


Note:This writing is the way the writer using to practice her English skill and legal analysis, not to offense anybody and will be very please by the correction that may be given.