A draft government regulation on merger and acquisition is close to completion and is expected to be issued in the first semester of this year, a monopoly watchdog says.
The Business Competition Supervisory Agency (KPPU) told a press conference on Wednesday the regulation would provide guidelines for implementation of the 1999 antimonopoly law, which, among other things, prohibits mergers and acquisition that would result in monopoly or other unfair business practices.
“The government regulation will affect all local and foreign companies, whether listed in the stock market or not,” KPPU spokesman Junaidi told the Post.
Under the draft government regulation, KPPU will determine if a company is qualified for a merger or acquisition using a certain threshold.
“We will use the Herfindahl-Hirschman Index of market concentration, which is largely used in the United States, to determine whether a merger or acquisition plan requires a further examination,” Junaidi said, adding that Indonesia will adopt a higher threshold than that in the US. (adh)
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