Principle of Competitive Neutrality for State-Owned Enterprises to an Access to Justice on Business Practices

Abstract

This research is entitled” Principle of Competitive Neutrality for State-Owned Enterprises to an Access to Justice on Business Practices”. The background of the problem in this dissertation is that business competition conducted by State-Owned Enterprises (SOE’s) against private business actors is not neutral or fair, so it needs to be based on the principle of competitive neutrality. The principle of competitive neutrality is the principle of competition law that companies must compete on the basis of the superiority of their products and may not take undue advantage. In this case the state has a role as regulator and entrepreneur through SOE’s, so that neutral competition is difficult to fulfill without being based on laws and regulations. The formulations of the problem in this dissertation research are: 1) Constitutional basis of state-owned enterprises in national development; 2) Legal principles of competitive neutrality in international legal instruments; 3) Principle of competitive neutrality in national law. Based on Article 1 paragraph (2) juncto Article 33 paragraph (1), paragraph (2) and paragraph (3) of the 1945 Constitution of the Republic of Indonesia that sovereignty is in the hands of the people, production branches which are important to the state and which affect the livelihood of the people at large are controlled by the state and used for the greatest prosperity the people, and most importantly the economy is structured as a joint effort on the principle of kinship, so principles are important as Competitive Neutrality for SOE’s so that they can work together fairly with private business actors.