CURING THE NATION IN THE AGE OF COVID-19: RELIANCE ON PROCUREMENT EXEMPTION POLICY IN INDONESIA?
Main Article Content
Abstract
This paper analyzes Indonesia's health sector procurement exemption policy during the Covid-19 pandemic.To respond to the current COVID-19 pandemic, it has been recognized that collaboration between competitors is necessary. However, it is also known that some collaborations will infringe on competition law if it is not handled with care. In Indonesia, the Government takes a further step by identifying necessary cooperation and excluding such cooperation from competition law enforcement based on public interest, in one instance for those within the health sector supply chain. Applying a procurement exemption policy means to line aside competition law for competitors, others within the supply chain, and various consumer groups. However, the immunity policy does not mean it will not create risks.
Article Details
This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.
References
Albert Sanchez-Graells, Procurement and Commissioning during COVID-19: reflections and (early) lessons, 71 NORTHERN IRELAND LEGAL QUARTERLY (2020).
Albert Sanchez-Graells, Procurement in the time of COVID-19, 71 NORTHERN IRELAND LEGAL QUARTERLY (2020).
Australia Australia Competition Authority, The Australian Competition Authority authorizes oil companies to cooperate to secure fuel supplies during the COVID-19 pandemic, E-COMPETITIONS BULLETIN (2020).
Okeoghene Odudu, Feeding the nation in times of crisis: the relaxation of competition law in the United Kingdom, 19 COMPETITION LAW JOURNAL (2020).
Hrishav Kumar & Anish Gupta, The Indian Competition Authority authorises companies to collaborate and enter into agreements to share information to enhance the efficiency of production, supply, distribution, storage, acquisition during the COVID-19 crisis, E-COMPETITIONS BULLETIN (2020).
Indonesia Cabinet Secretariat of Indonesia, Government Issues Presidential Regulation on COVID-19 Vaccines, Vaccination(2020), available at https://setkab.go.id/en/govt-issues-presidential-regulation-on-covid-19-vaccines-vaccination/.
Vladyslav Teremetskyi, et al., Corruption and strengthening anti-corruption efforts in healthcare during the pandemic of Covid-19, MEDICO-LEGAL JOURNAL (2020).
Bruce H Kobayashi & Joshua D Wright, Antitrust Exemptions and Immunities in the Digital Economy, 30 THE GLOBAL ANTITRUST INSTITUTE REPORT ON THE DIGITAL ECONOMY (2020).
Naveen Donthu & Anders Gustafsson, Effects of COVID-19 on business and research, 117 JOURNAL OF BUSINESS RESEARCH (2020).
Global Forum on Competition: Crisis Cartels. No. DAF/COMP/GF(2011)11(2011).
Ivana Rakić, Competition law in the age of COVID-19, 68 АНАЛИ ПРАВНОГ ФАКУЛТЕТА У БЕОГРАДУ (2020).
Lailatul Mufidah & Kukuh Tejomurti, A Legal Analysis of the Implementation of Vaccine Procurement in Managing the Coronavirus Disease 19 (Covid-19), XX UPH LAW REVIEW (2021).
Gita Gopinath, The great lockdown: Worst economic downturn since the great depression, 14 IMF BLOG (2020).
World Economic Outlook, April 2020 : The Great Lockdown. No. WEOEA2020001, pt. 177 (2020).
EU, Antitrust: Joint Statement by the European Competition Network (ECN) on Application of Competition law during the Corona Crisis(2020), available at https://ec.europa.eu/competition/ecn/202003_joint-statement_ecn_corona-crisis.pdf.
ASEAN, Joint Statement by the Asean Experts Group on Competition (Aegc) In Response to the Coronavirus Disease (Covid-19) Pandemic(June 11, 2020), available at https://eng.kppu.go.id/joint-statement-by-the-asean-experts-group-on-competition-aegc-in-response-to-the-coronavirus-disease-covid-19-pandemic/.
UK UK Government, Press release: Supermarkets to Join Forces to Feed the Nation(March 19, 2020), available at https://www.gov.uk/government/news/supermarkets-to-join-forces-to-feed-the-nation.
Autoridade da Concorrencia, Press release 03/2020: AdC Assures Vigilance of Anticompetitive Practices that Exploit Current Situation(2020), available at http://www.concorrencia.pt/vEN/News_Events/Comunicados/Pages/PressRelease_202003.aspx.
HKCC Hongkong Competition Commission, Competition Commission reminds businesses participating in anti-epidemic subsidy programmes to adhere to the Competition Ordinance(May 8, 2020), available at https://www.compcomm.hk/en/media/press/files/EN_PR_Govt_fund_20200508.pdf.
CADE, Press Release – cadeados(June, 2020), available at https://www.gov.br/produtividade-e-comercio-exterior/pt-r/images/REPOSITORIO/secex/decom/Resumos_pareceres/191029a_Pressa_Releasea_Cadeados.x.pdf/view.
OECD, Co-operation between Competitors in the Time of COVID-19, OECD(2020), available at https://www.oecd.org/competition/Co-operation-between-competitors-in-the-time-of-COVID-19.pdf.
CCB Canada Competition Bureau, Statement from the Commissioner of Competition regarding enforcement during the COVID-19 coronavirus situation(2020), available at https://www.canada.ca/en/competition-bureau/news/2020/03/statement-from-the-commissioner-of-competition-regarding-enforcement-during-the-covid-19-coronavirus-situation.html.
Deborah Platt Majoras, State intervention: A state of displaced competition, 13 GEO. MASON L. REV. (2004).
KPPU, KPPU Tetap Melakukan Upaya Penegakan Hukum Selama Masa Pandemi Covid-19(July 24, 2020), available at https://kppu.go.id/blog/2020/07/kppu-tetap-melakukan-upaya-penegakan-hukum-selama-masa-pandemi-covid-19/.
KPPU, ICC Follows Up Information of The State-Owned Enterprises Minister on The Alleged Medical Device ‘Mafia’(April 27, 2020), available at https://eng.kppu.go.id/icc-follows-up-information-of-the-state-owned-enterprises-minister-on-the-alleged-medical-device-mafia/.
KPPU, ICC Conducts Initiative Study Against Alleged Violations of Rapid Test Services to Diagnose Covid-19 Committed By Hospitals(April 27, 2020), available at https://eng.kppu.go.id/icc-conducts-initiative-study-against-alleged-violations-of-rapid-test-services-to-diagnose-covid-19-committed-by-hospitals/.
SA South Africa Government, Government Gazette Staatskoerant: Covid-19 Block Exemption For The Healthcare Sector, 2020(March 19, 2020), available at https://www.gov.za/sites/default/files/gcis_document/202003/4311419-3dti.pdf.
SA South Africa Government, Competition Act: Regulations and directions: Consumer and customer protection during Coronavirus COVID-19 lockdown(2020), available at https://www.gov.za/documents/competition-act-regulations-consumer-and-customer-protection-and-national-disaster#.
SA South Africa Government, Competition Act: Regulations: Coronavirus Covid-19 Block Exemption for the Banking Sector(2020), available at https://www.gov.za/documents/competition-act-coronavirus-covid-19-block-exemption-banking-sector-23-mar-2020-0000.
SA South Africa Government, Government Notices: Covid -19 Block Exemption For The Hotel Industry, 2020(March 27, 2020), available at https://www.gov.za/sites/default/files/gcis_document/202003/43175rg11069gon422.pdf.
EC, Comfort letter: coordination in the pharmaceutical industry to increase production and to improve supply of urgently needed critical hospital medicines to treat COVID-19 patients(2020), available at https://ec.europa.eu/competition/antitrust/medicines_for_europe_comfort_letter.pdf.
EC, Temporary Framework for assessing antitrust issues related to business cooperation in response to situations of urgency stemming from the current COVID-19 outbreak(April 8, 2020), available at https://ec.europa.eu/info/sites/info/files/framework_communication_antitrust_issues_related_to_cooperation_between_competitors_in_covid-19.pdf.
EC, Communication from the Commission Guidelines on the optimal and rational supply of medicines to avoid shortages during the COVID-19 outbreak 2020/C 116 I/01(2020), available at https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=uriserv:OJ.CI.2020.116.01.0001.01.ENG&toc=OJ:C:2020:116I:TOC.
EC, Communication - A European roadmap to lifting coronavirus containment measures(2020), available at https://ec.europa.eu/info/files/communication-european-roadmap-lifting-coronavirus-containment-measures_en.
European commission, Communication from the Commission Guidance from the European Commission on using the public procurement framework in the emergency situation related to the COVID-19 crisis 2020/C 108 I/01(2020), available at https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX%3A52020XC0401%2805%29.
EC, Coronavirus: Commission announces exceptional measures to support the agri-food sector(2020), available at https://ec.europa.eu/commission/presscorner/detail/en/ip_20_722.
Government UK, The Competition Act 1998 (Health Services for Patients in England) (Coronavirus) (Public Policy Exclusion) Order 2020(2020), available at https://www.legislation.gov.uk/uksi/2020/368/contents/made.
Government UK, COVID-19: CMA approach to essential business cooperation(2020), available at https://www.gov.uk/government/news/covid-19-cma-approach-to-essential-business-cooperation?utm_source=64a0c8cf-3303-43b5-bac3-de3b83b8fb7d&utm_medium=email&utm_campaign=govuk-notifications&utm_content=immediate.
Government UK, CMA launches COVID-19 taskforce(2020), available at https://www.gov.uk/government/news/cma-launches-covid-19-taskforce?utm_source=99a4cddc-813a-43ed-989c-b5072e864fdc&utm_medium=email&utm_campaign=govuk-notifications&utm_content=immediate.
Government UK, Coronavirus (COVID-19): CMA open letter to pharmaceutical and food and drink industries(2020), available at https://www.gov.uk/government/publications/covid-19-cma-open-letter-to-pharmaceutical-and-food-and-drink-industries.
KPPU, ICC’s Law Enforcement Activities to be Conducted Electronically in the Midst of Covid-19(April 7, 2020), available at https://eng.kppu.go.id/kppus-law-enforcement-activities-to-be-conducted-electronically-in-the-midst-of-covid-19/.
BNPB, Presiden Tetapkan COVID-19 Sebagai Bencana Nasional(April 13, 2020), available at https://bnpb.go.id/berita/presiden-tetapkan-covid19-sebagai-bencana-nasional.
Komite Penanganan dan Covid-19 dan Pemulihan Ekonomi Nasional, Data Vaksinasi COVID-19 (Update per 27 Maret 2021)(2021), available at https://covid19.go.id/berita/data-vaksinasi-covid-19-update-27-maret-2021.
Bernardy Ferdiansyah, Awasi pengadaan vaksin COVID-19 secara transparan, ANTARA NEWS, February 8, 2021.
Junanto Herdiawan, Optimism for Economic Recovery In 2021 Bank Indonesia Press Releases at https://www.bi.go.id/en/publikasi/ruang-media/news-release/Pages/sp_229020.aspx.
The Jakarta Post, Vaccination key to economic recovery: Economist The Jakarta Post at This article was published in thejakartapost.com with the title "Vaccination key to economic recovery: Economist". Click to read: https://www.thejakartapost.com/news/2021/03/29/vaccination-key-to-economic-recovery-economist.html.
Laura Alexandra Farca & Dacian Dragos, Resilience in Times Of Pandemic: Is the Public Procurement Legal Framework Fit for Purpose?, 16 TRANSYLVANIAN REVIEW OF ADMINISTRATIVE SCIENCES (2020).
KPPU, ICC Regulation No. 3 of 2020 on the Relaxation of Legal Enforcement of Monopoly Practices and Unfair Business Competition and Monitoring of Partnership Implementation to Support the National Economic Recovery(2020), available at https://kppu.go.id/wp-content/uploads/2020/11/Peraturan-KPPU-Nomor-3-Tahun-2020.pdf.
LKPP, Surat Edaran Kepala LKPP tentang Penegasan Atas Pelaksanaan Pengadaan Barang/Jasa Pada Masa Bencana Nasional Nonalam Penyebaran Corona Virus Disease 2019 (COVID-19)(December 15, 2020), available at https://jdih.lkpp.go.id/regulation/surat-edaran-kepala-lkpp/surat-edaran-kepala-lkpp-nomor-32-tahun-2020.
Jorge A Gallego, et al., Corruption in the Times of Pandemia, AVAILABLE AT SSRN 3600572 HTTPS://PAPERS.SSRN.COM/SOL3/PAPERS.CFM?ABSTRACT_ID=3600572 (2020).
KPK, KPK Tetap Kawal Program Vaksinasi Berita KPK at https://www.kpk.go.id/id/berita/berita-kpk/2043-kpk-tetap-kawal-program-vaksinasi.
Anja Baum, et al., Governance and State-Owned Enterprises: How Costly is Corruption? at https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3523126.
Emmanuelle Auriol, et al., Public procurement and rent-seeking: the case of Paraguay, 77 WORLD DEVELOPMENT (2016).
KPPU, Siaran Pers KPPU Nomor 22/KPPU-PR/IV/2020: Kppu Lakukan Penelitian Inisiatif Atas Dugaan Pelanggaran Layanan Rapid Test Untuk Diagnosis Covid-19 Oleh Rumah Sakit(2020), available at https://kppu.go.id/wp-content/uploads/2020/04/Siaran-Pers-No.-22_KPPU-PR_IV_2020.pdf.
Kementerian Kesehatan, Kemenkes Umumkan Kasus Flu Burung ke 200, Kementerian Kesehatan Indonesia(2017), available at https://www.kemkes.go.id/article/view/17110800005/kemenkes-umumkan-kasus-flu-burung-ke-200.html.
The Jakarta Post, Former Indonesian health minister sentenced to four years for accepting bribes, THE JAKARTA POST, June 6. 2017.
John Roberti, et al., The Role and Relevance of Exemptions and Immunities in U.S. Antitrust Law, presented at United States Department of Justice Roundtable on Exemptions and Immunities from Antitrust Law at https://www.justice.gov/atr/page/file/1042806/download.
The impact of cartelization, money, and productivity shocks on the international Great Depression. (2013).
Lee E Ohanian, What–or who–started the great depression?, 144 JOURNAL OF ECONOMIC THEORY (2009).
Christine A Varney, Vigorous antitrust enforcement in this challenging era, REMARKS PREPARED FOR THE US CHAMBER OF COMMERCE, DEPARTMENT OF JUSTICE (2009).
Laura Phillips Sawyer, US Antitrust law and policy in historical perspective, in OXFORD RESEARCH ENCYCLOPEDIA OF AMERICAN HISTORY (2019).
Bernard C Beaudreau & Jason E Taylor, Why did the Roosevelt administration think cartels, higher wages, and shorter workweeks would promote recovery from the great depression?, 23 THE INDEPENDENT REVIEW (2018).
Carl Shapiro, Competition Policy in Distressed Industries (ABA 2009). Available online at http://www.justice.gov/atr/public/speeches/245857.pdf
Cristina Volpin & Ruben Maximiano, The Role of Competition Policy in Promoting Economic Recovery, AVAILABLE AT SSRN 3917877 (2020).