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The Benefit of Competition Law to SME

The Benefit of Competition Law to SME . Dr. Sutrisno Iwantono and Murman Budjianto - Iwant & Co.-. General Issue. Number of SME in Indonesia Around 52 Million : 99% of total established firms Agribusiness Sector 60% Retail and Trade Sector 24% Industry Sector 4%. Role of SME.

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The Benefit of Competition Law to SME

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  1. The Benefit of Competition Law to SME Dr. SutrisnoIwantonoand MurmanBudjianto - Iwant & Co.-

  2. General Issue • Number of SME in Indonesia • Around 52 Million : 99% of total established firms • Agribusiness Sector 60% • Retail and Trade Sector 24% • Industry Sector 4%

  3. Role of SME • Job Opportunity • Gross Domestic Product • Wealth Distribution • Rural Development • Distribution Network • Poverty Reduction

  4. Role of Competition Law • To pursue that SME has equitable opportunity to participate in economy, access development. • To ensure healthy business environment for developing countries • To protect SME from unfair business practices

  5. Critical Business Infringement/Unfair Business Practice 1. When SME as supplier of big business: • Abuse of dominant position • Negative Margin • Listing fee • Discrimination • Trading term • Payment system

  6. Critical Business Infringement/Unfair Business Practice(Cont) 2. When SME as distributor of big business • Market allocation • Price discrimination • Tying and bundling • Vertical Integration

  7. Critical Business Infringement/Unfair Business Practice(Cont) 3. When SME compete with big business in the same market • Predatory pricing • Artificial entry business • Blocked production and or marketing • Effect of vertical integration • Effect of small member Cartel

  8. The Opportunities to participate in Economy • Market Access • Input Access • Technology Access • Business Idea

  9. Sometimes Lack of: • Financial/Capital • Human Resources • Competition Culture • Creative Process Development • Technology Sourcing • Management System/Skill

  10. Supports Needed • Source of Financial Supports • Venture Capital • Bank/Non Bank Financing • Angel Investors • Management/Technology Supports • Start up/Development Consultancy • Empowering Program • Modern Education System • Pro Creative Development • Business School • Applied Technology

  11. Indonesian Experience • Travel Agents – benefits from airlines competition and market development • Compete with e-ticketing • Creative tour products/diversification • Creative services • Retailers in the Airports • Compete to deliver excellence services • Hand-phone distribution/retails – benefits from mobile telecomm competition • Gadgets technology development • Knowledge sharing

  12. Last Issue • Need More Socialization program to SME on Fair Competition Thank You – Iwant & Co

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