Competition Law at Indonesia
Here’s a summary of Competition Law in Indonesia:
🇮🇩 Competition Law in Indonesia
1. Legal Framework
Law No. 5 of 1999 on the Prohibition of Monopolistic Practices and Unfair Business Competition
This is the primary legislation governing competition in Indonesia. It prohibits monopolistic practices, unfair business competition, and abuse of dominant market positions.
The law is enforced by the Business Competition Supervisory Commission (Komisi Pengawas Persaingan Usaha, KPPU).
2. Key Provisions
Prohibited Practices:
Price fixing, market allocation, production limitation agreements (cartels)
Abuse of dominant position (e.g., predatory pricing, refusal to deal)
Mergers and acquisitions that may substantially lessen competition without notification or approval
Merger Control:
Indonesia requires certain mergers and acquisitions above specified thresholds to be notified and reviewed by KPPU.
3. Enforcement Authority
Business Competition Supervisory Commission (KPPU)
Independent agency with investigatory and adjudicatory powers to enforce competition laws, impose fines, and make rulings.
KPPU decisions can be challenged in general courts.
4. Sanctions
Administrative sanctions include fines, forced divestitures, or cancellation of business licenses.
Criminal sanctions can apply for severe violations.
KPPU can order companies to cease illegal practices.
5. Recent Developments
The Indonesian government has shown efforts to strengthen competition policy, especially in digital markets.
There is ongoing discussion on revising competition law to better regulate emerging sectors.
KPPU is increasingly active in investigating cartels and abuse of dominance.
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