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International Law

: Indonesian Law Reporter (ILR)

Supreme Court Decision on Water Monopoly in Batam

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Quick Blogging.

The Supreme Court recently upholds KPPU (the Indonesian Competition Commission) condemning PT. Adhya Tirta Batam (ATB) for violating Article 17 of the Competition Law. The KPPU Decision reads:

PT. Adhya Tirta Batam is proven legally and convincingly violating Article 17 of Law Number 5 Year 1999 concerning Prohibition of Monopolistic Practices and Unfair Business Competition;
PT. Adhya Tirta Batam is not proven violating Article 19, point d of Law Number 5 Year 1999 concerning Prohibition of Monopolistic Practices and Unfair Business Competition;
PT. Adhya Tirta Batam is not proven violating Article 25 paragraph (1), point a of Law Number 5 Year 1999 concerning Prohibition of Monopolistic Practices and Unfair Business Competition;
PT. Adhya Tirta Batam should revoke the policy of disconnecting the new water meter connection;

Given my current workload, I am unable to provide analysis for this verdict. But this could be the first legal decision involving the abuse of dominant position in a natural monopoly environment. As such, this could set a benchmark for legal principles of economic regulation of water utilities in the future.

Read here for more news.

Full post as published by Indonesian Law Reporter (ILR) on May 11, 2010 (boomark / email).