Indonesia
Developing FrameworkLaw No. 5/1999 on Prohibition of Monopolistic Practices and Unfair Business Competition
Authority: KPPU (Commission for Supervision of Business Competition) | Enforcement: Active | Enacted: March 2000
Overview
Indonesia's competition law has been in force since 2000, making it one of the older ASEAN competition regimes. Law No. 5/1999 covers anti-competitive agreements, abuse of dominant position, mergers and acquisitions, and unfair business practices. The KPPU serves as both investigator and adjudicator. The KPPU has been active in enforcement, particularly in bid-rigging cases involving government procurement and cartel conduct in industries such as fuel, cooking oil, and cement. Government Regulation No. 44/2021 strengthened merger control with a mandatory pre-merger notification system. However, concerns remain about the KPPU's dual role and procedural fairness.
14-Topic Competition Coverage
Competition Authority
Fully AddressedThe KPPU is an independent commission with powers to investigate, adjudicate, and impose penalties. Its dual role as investigator and adjudicator has drawn procedural criticism.
Anti-Competitive Agreements (Horizontal)
Fully AddressedOligopoly, price-fixing, market allocation, boycotts, cartels, and bid-rigging are prohibited under Articles 4-12 of Law 5/1999.
Anti-Competitive Agreements (Vertical)
Fully AddressedVertical agreements including exclusive dealing, resale price maintenance, and tying arrangements are prohibited under Articles 14-16 where they cause unfair competition.
Abuse of Dominance
Fully AddressedAbuse of dominant position is prohibited under Articles 25-28, covering acts such as preventing market entry, exploitative practices, and interlocking directorates.
Merger Control
Fully AddressedMandatory post-merger notification required. Government Regulation No. 44/2021 introduced voluntary pre-merger notification and refined asset/turnover thresholds.
Leniency Programme
Partially AddressedA leniency programme was introduced under KPPU Regulation No. 1/2019 but has seen limited practical application. Implementation guidance is still developing.
Settlement & Commitment
Partially AddressedThe KPPU may accept undertakings or compliance commitments, though formal settlement procedures are not extensively codified.
Penalties & Sanctions
Fully AddressedThe KPPU may impose administrative fines of IDR 1 billion to IDR 25 billion for cartels. Additional sanctions include prohibition orders and compensation payments.
Digital Markets Regulation
Partially AddressedNo dedicated digital markets competition law. The KPPU has begun examining e-commerce platforms and digital marketplace practices under the existing law.
Sector Regulators
Fully AddressedOJK (financial services), BKPM (investment), and sector ministries cooperate with KPPU on competition matters. Telecommunications and energy have sector-specific competition provisions.
Dawn Raids & Investigations
Partially AddressedThe KPPU has investigative powers including document requests and witness summons. Dawn raid powers are limited compared to more mature jurisdictions.
Private Enforcement
Partially AddressedParties may file reports with the KPPU. Follow-on civil claims for damages are possible but rarely pursued. No formal class action mechanism for competition claims.
International Cooperation
Fully AddressedIndonesia cooperates with ASEAN competition authorities and participates in the ICN and OECD competition forums. Bilateral cooperation with Australia, Japan, and South Korea.
Recent Enforcement Trends
Fully AddressedActive enforcement in bid-rigging (government procurement) and cartel cases in commodities. Growing scrutiny of digital platforms and e-commerce practices.
Coverage Summary
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