KPPU’s Role in Concessions On Contractor Company

In this case, KPPU should be involved since the initial process of the concession is carried out, so that advocacy and advice related to business competition can be given from the process of preparation to the determination of concession holders. KPPU can also assist the government in mapping the structure of the sector to be concessioned, up to the process of designing a concession agreement to maximize the impact of competition when the concession is implemented and also minimize opportunities for collusion.

In the process of forming regulations related to concessions, KPPU can provide advice on the form of tariff arrangements. Where the authority to set tariffs must remain in the hands of the government or involve the government in its formulation, so that the concessionaire cannot increase tariffs unilaterally which can harm consumers.

In addition, the time period for granting concessions must be clear and taking into account proportional incentives for the concession holders, because a concession granting period that is too short will make it difficult for private parties to participate. Likewise, a concession granting period that is too long for one business actor will have an impact on creating a dominant position and an entry barrier for other business actors. This is because the market structure of the concessioned sector is usually a natural monopoly.
Meanwhile with regard to the enforcement of business competition law, KPPU can monitor the possibility of collusion during the tender process for determining the winner of the concession as well as the possibility of violation of business competition law by the concession winner.

The definition of infrastructure is all basic structures and facilities, both physical and social (eg buildings, roads and electricity supply) needed for the operation of community activities or Company Infrastructure.

Another opinion says that the meaning of infrastructure is all types of facilities needed by the general public to support various community activities in everyday life. In other words, infrastructure is all facilities, both physical and non-physical, built by the government or individuals to meet the basic needs of society in the social and economic spheres.

Infrastructure generally refers to physical development for public facilities such as; highways, airports, ports, electricity, telecommunications, clean water, waste treatment, hospitals, schools, and so on. In addition, infrastructure also refers to technical matters that support community economic activities, such as; modes of transportation, distribution of goods and services, and others.