Analysis Of Unfair Business Competition Legal In The Procurement Of Medical Devices (Case Study: KPPU Decision Number 24/KPPU-I/2016 Concerning Alleged Violations Of Article 22 Of Law Number 5 Of 1999)
Understanding the Issue of Unfair Business Competition in Medical Device Procurement
In the business world, especially in the medical device procurement sector, the practice of conspiracy in tender is often an issue that interferes with justice and transparency. Unfair business competition is a significant concern in the medical device industry, where companies may engage in practices that undermine the principles of fair competition, ultimately affecting the quality of healthcare services and the prices of medical devices. One concrete example of this problem can be seen in the KPPU Decision Number 24/KPPU-I/2016, which reveals the alleged violation of Article 22 of Law Number 5 of 1999 concerning Anti-Monopoly and Unfair Business Competition.
Tender conspiracy, defined as collusion carried out by two or more business actors with the aim of winning a tender, is a common practice in the medical device procurement sector. In this scenario, some tender participants agree to provide an unreal offering price, where one participant is appointed to win at a lower price, while the other participants submit offers above the price. This action is clearly contrary to the principle of justice in the auction process, which should ensure a healthy competition and an efficient price for consumers.
The Formulation of the Problem and Research Method
The formulation of the problem raised in this study includes two main aspects: First, how is the tender conspiracy in terms of the perspective of Law Number 5 of 1999? Second, are companies such as PT Synergy Dua Kawan Sejati, PT Kembang Turi Healthcare, PT Dwi Putra Unggul Pratama, CV Trimanunggal Mandiri, and CV Tiga Utama engaged in the field of medical devices really proven to violate these provisions? The research method used is normative juridical, which examines literature and relevant legal sources.
The Results of the Study: Forms of Tender Conspiracy
The results of the study indicate the presence of three forms of tender conspiracy: vertical, horizontal, and combined conspiracy (vertical and horizontal). To classify an action as a conspiracy, several elements must be considered, namely: the presence of business actors who are conspiring, regulating or determining the winner of the tender, as well as the impact that leads to unfair business competition. In the case analyzed, these companies conducted horizontal conspiracy, which was indicated through an indirect agreement in the tender offer, and therefore proven to violate Article 22 of Law Number 5 of 1999.
The Impact of Tender Conspiracy on the Wider Community
In a deeper analysis shows that the conspiracy in the tender of medical devices not only harms the parties involved in the tender itself, but also has a negative impact on the wider community. This practice can result in an increase in prices of goods and services, as well as reducing the quality of health services that should be accessed by the public. In this context, it is important for the government and related institutions to carry out strict supervision and strict law enforcement of unhealthy business practices.
The Need for Awareness and Compliance with Existing Regulations
Overall, the case handled by the KPPU emphasizes the need for awareness and compliance with existing regulations, for the creation of a healthy and fair business competition climate in Indonesia. Collaborative efforts between the government, business actors, and the community are the key to overcoming challenges in the procurement of medical devices and ensuring that the tender process takes place transparently and accountably.
Conclusion
In conclusion, the analysis of unfair business competition legal in the procurement of medical devices highlights the importance of strict supervision and law enforcement of unhealthy business practices. The case study of KPPU Decision Number 24/KPPU-I/2016 serves as a reminder of the need for awareness and compliance with existing regulations, for the creation of a healthy and fair business competition climate in Indonesia. By understanding the forms of tender conspiracy and their impact on the wider community, we can work towards creating a more transparent and accountable tender process, ultimately benefiting the public and promoting fair competition in the medical device industry.
Recommendations
Based on the findings of this study, the following recommendations are made:
- Strengthening of Law Enforcement: The government and related institutions should strengthen law enforcement of unhealthy business practices, including tender conspiracy, to ensure that companies comply with existing regulations.
- Awareness and Education: Business actors and the community should be aware of the importance of fair competition and the consequences of engaging in unhealthy business practices.
- Collaborative Efforts: Collaborative efforts between the government, business actors, and the community are necessary to overcome challenges in the procurement of medical devices and ensure that the tender process takes place transparently and accountably.
- Regulatory Reforms: Regulatory reforms should be implemented to strengthen the existing laws and regulations related to fair competition and tender conspiracy.
By implementing these recommendations, we can promote fair competition in the medical device industry, ultimately benefiting the public and ensuring that the tender process takes place transparently and accountably.
Q1: What is unfair business competition in medical device procurement?
A1: Unfair business competition in medical device procurement refers to the practice of conspiracy in tender, where two or more business actors collude to win a tender by providing unreal offering prices, ultimately undermining the principles of fair competition.
Q2: What are the forms of tender conspiracy?
A2: The study indicates the presence of three forms of tender conspiracy: vertical, horizontal, and combined conspiracy (vertical and horizontal). Vertical conspiracy involves a company conspiring with its suppliers or customers, while horizontal conspiracy involves companies conspiring with each other. Combined conspiracy involves both vertical and horizontal conspiracy.
Q3: What are the consequences of tender conspiracy?
A3: The consequences of tender conspiracy include an increase in prices of goods and services, as well as reducing the quality of health services that should be accessed by the public. This practice can also lead to a lack of transparency and accountability in the tender process.
Q4: How can the government and related institutions prevent tender conspiracy?
A4: The government and related institutions can prevent tender conspiracy by strengthening law enforcement of unhealthy business practices, including tender conspiracy. This can be achieved by implementing strict supervision and law enforcement of companies that engage in such practices.
Q5: What role do business actors play in preventing tender conspiracy?
A5: Business actors play a crucial role in preventing tender conspiracy by being aware of the importance of fair competition and the consequences of engaging in unhealthy business practices. They should also comply with existing regulations and report any suspicious activities to the relevant authorities.
Q6: How can the community contribute to preventing tender conspiracy?
A6: The community can contribute to preventing tender conspiracy by being aware of the importance of fair competition and the consequences of engaging in unhealthy business practices. They should also report any suspicious activities to the relevant authorities and support companies that comply with existing regulations.
Q7: What are the benefits of preventing tender conspiracy?
A7: The benefits of preventing tender conspiracy include promoting fair competition in the medical device industry, ensuring that the tender process takes place transparently and accountably, and ultimately benefiting the public by providing quality health services at affordable prices.
Q8: How can regulatory reforms be implemented to strengthen existing laws and regulations related to fair competition and tender conspiracy?
A8: Regulatory reforms can be implemented by reviewing and updating existing laws and regulations related to fair competition and tender conspiracy. This can include strengthening penalties for companies that engage in such practices and providing more support for companies that comply with existing regulations.
Q9: What is the role of awareness and education in preventing tender conspiracy?
A9: Awareness and education play a crucial role in preventing tender conspiracy by educating business actors and the community about the importance of fair competition and the consequences of engaging in unhealthy business practices.
Q10: How can collaborative efforts between the government, business actors, and the community contribute to preventing tender conspiracy?
A10: Collaborative efforts between the government, business actors, and the community can contribute to preventing tender conspiracy by promoting awareness and education, strengthening law enforcement, and implementing regulatory reforms. This can ultimately lead to a more transparent and accountable tender process.