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Jakarta Post

Competition watchdog to grow teeth for ASEAN region

  • News Desk

    The Jakarta Post

Jakarta   /   Fri, June 3, 2016   /  06:05 pm
Competition watchdog to grow teeth for ASEAN region Business Competition Supervisory Commission (KPPU) head Syarkawi Rauf (second left) at a discussion on cartels in Surabaya in March 2013. (Courtesy of KPPU/-)

Indonesia is preparing a tougher antimonopoly law, allowing the antimonopoly body to launch a cross-border probe into Southeast Asia-based entities and raising the maximum fine to 30 percent of a cartel’s revenue.

The new clauses are among big changes in an amendment of the 1999 Antimonopoly Law approved by a working committee of the Business Competition Supervisory Commission (KPPU), according to KPPU head Syarkawi Rauf.

“Under the amendment, the KPPU will impose a 5 percent to 30 percent penalty of the cartel revenues. That will create a stronger deterrent effect,” he said in Jakarta on Thursday, as quoted by

Under the existing law, the antimonopoly body can only impose a maximum fine of Rp 25 billion (US$1.8 million) regardless of the revenues of the cartel, which according to Syarkawi, could reach hundreds of billions of rupiah.

Another important clause is the broader definition of cartel and the wider jurisdiction that gives the KPPU in launching investigations into Southeast Asia-based companies suspected of involvement in a cartel in Indonesia.

The wider jurisdiction, along with stronger authority, as the KPPU’s status would be upgraded from a commission to a state institution, had been granted to face new challenges in the ASEAN Economic Community (AEC), said Syarkawi.

“The KPPU will be able to launch an investigation. As for the technical aspects, we will regulate them in the supporting regulations […] The KPPU will also be able to fully pardon cartel-linked entities that act as whistleblowers to expose the cartel or monopoly,” he said.

Moreover, the amendment would oblige any corporate action like acquisitions and mergers, which could lead to market domination, to be reported to the KPPU. The antimonopoly body would then issue a recommendation.

The House of Representatives would finalize the amendment draft at a commission meeting before the House’s Legislation Body (Baleg) would include it in plenary scheduling, said Azam Azman Natawijaya, deputy speaker of House Commission VI, which oversees trade, industry and investment.

"I do not think there are significant obstacles at the commission meeting ahead. Hence, the draft can be delivered to Baleg soon. Hopefully, we can pass the amendment into law this year," he said. (ags)

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