In the jurisdiction of Indonesia, the antitrust authority shall be under the Business Competition Supervisory Commission (Komisi Pengawas Persaingan Usaha or “KPPU”), which established based on Presidential Decree No. 75 of 1999 on KPPU, as amended by the Presidential Regulation No. 80 of 2008 on Amendments of Presidential Decree No. 75 of 1999 on KPPU, with the main purpose of monitoring and supervising the implementation of Law No. 5 of 1999 on Prohibition of Monopolistic Practices and Unfair Business Competition as amended by Law No. 6 of 2023 on the Stipulation of Government Regulation No. 2 of 2022 in Lieu of Job Creation Law to Become Law ("Competition Law”), the core regulation on antitrust in Indonesia.
KPPU’s powers in relation to merger control that may lead to Monopolistic Practices and/or Unfair Business Competition ("MPUBC") are mainly:
- receiving reports from the public and/or business actors regarding allegations of MPUBC;
- conducting research regarding the possible existence of MPUBC;
- conducting the investigation and/or examination of allegations in MPUBC cases;
- invoking and presenting the witnesses within the provisions of the law;
- seeking the assistance of investigators in presenting the business sector, witnesses, expert witnesses, or any intended person who are not prepared in response to the Commission’s summons;
- requesting the government statement in the investigation of business actors who violate Competition Law;
- obtaining, examining, and assessing the documents or evidence for investigation purposes;
- confirming the existence or non-existence of losses suffered by other business actors or the public;
- imposing the administrative sanctions on business actors who violate Competition Law.
(Article 36 of Competition Law)
KPPU’s scope of work covers:
- evaluating the agreements leading to MPUBC, including oligopoly, price fixing, dividing territories, boycott, cartel, trust, oligopsony, vertical integration, exclusive dealing, or agreements with foreign parties;
- conducting evaluations of business activities, actions, or business actions that can lead to monopoly, monopsony, market control, conspiracy;
- acting in accordance with KPPU’s powers/authorities;
- providing the advices and opinions regarding the government policies related to MPUBC;
- preparing the guidelines and/or publications related to the law; and
- submitting periodic reports on the results of KPPU’s work to the President and related legislative institutions.
(Article 35 of Competition Law)