Indonesia: KPPU releases 2023 annual report; continued robust enforcements and Competition Law amendment on the horizon

In brief

2023 was a transformative year for the Indonesian Competition Commission (Komisi Pengawas Persaingan Usaha, KPPU). Among others, the KPPU updated its merger control regulation and case handling regulation, introduced guidelines to help corporations identify issues in bid rigging, and updated its guideline to define the relevant market and mechanism for payment of administrative fines by instalments. The transformation continues with the new KPPU leadership and issuance of regulation on case handling for unfair contract terms. In June 2024, the KPPU released its 2023 Annual Report showcasing trends and statistics in merger control and enforcement.


Contents

2023 KPPU enforcement in numbers

CASE3376637_Picture1
Source: KPPU Annual Report 2023 and KPPU's website

Merger control in 2023

Although the merger filing criteria for assets thresholds has been reversed to only capture Indonesian assets, the number of offshore transaction filings received by the KPPU in 2023 remains significant as they account for up to 43% of the merger filings received throughout the year.

CASE3376637_Picture2
Source: KPPU Annual Report 2023 and KPPU's website

On the horizon

In 2024, KPPU has been actively scrutinizing potentially unfair business practices agreements and conducts. KPPU is currently examining three cases sourced from its own initiative and two cases sourced from public reports, in addition to a late notification case and an unfair contract terms case.

Under its new leadership, the KPPU has been actively participating in various international forums, including the OECD meeting and ABA Spring Meeting. These were followed by an audience with the House of Representatives to discuss the possible amendment of the Competition Law, where the KPPU chairperson raised issues such as overlapping provisions, ineffective post-transaction merger control, and the absence of a leniency procedure as among the reasons why the current Competition Law has become rather obsolete and thus needs updating.

* * * * *

LOGO_Indonesia HHP Law Firm_Jakarta

© 2024 HHP Law Firm. All rights reserved. HHP Law Firm is a member firm of Baker & McKenzie International. This may qualify as "Attorney Advertising" requiring notice in some jurisdictions. Prior results do not guarantee a similar outcome.

Contact Information
Dyah Ayu Paramita
Associate Partner at BakerMcKenzie
Jakarta
dyahayu.paramita@hhplawfirm.com
Jocelyn Aprilia
Associate at BakerMcKenzie
Jakarta
jocelyn.aprilia@hhplawfirm.com

Copyright © 2024 Baker & McKenzie. All rights reserved. Ownership: This documentation and content (Content) is a proprietary resource owned exclusively by Baker McKenzie (meaning Baker & McKenzie International and its member firms). The Content is protected under international copyright conventions. Use of this Content does not of itself create a contractual relationship, nor any attorney/client relationship, between Baker McKenzie and any person. Non-reliance and exclusion: All Content is for informational purposes only and may not reflect the most current legal and regulatory developments. All summaries of the laws, regulations and practice are subject to change. The Content is not offered as legal or professional advice for any specific matter. It is not intended to be a substitute for reference to (and compliance with) the detailed provisions of applicable laws, rules, regulations or forms. Legal advice should always be sought before taking any action or refraining from taking any action based on any Content. Baker McKenzie and the editors and the contributing authors do not guarantee the accuracy of the Content and expressly disclaim any and all liability to any person in respect of the consequences of anything done or permitted to be done or omitted to be done wholly or partly in reliance upon the whole or any part of the Content. The Content may contain links to external websites and external websites may link to the Content. Baker McKenzie is not responsible for the content or operation of any such external sites and disclaims all liability, howsoever occurring, in respect of the content or operation of any such external websites. Attorney Advertising: This Content may qualify as “Attorney Advertising” requiring notice in some jurisdictions. To the extent that this Content may qualify as Attorney Advertising, PRIOR RESULTS DO NOT GUARANTEE A SIMILAR OUTCOME. Reproduction: Reproduction of reasonable portions of the Content is permitted provided that (i) such reproductions are made available free of charge and for non-commercial purposes, (ii) such reproductions are properly attributed to Baker McKenzie, (iii) the portion of the Content being reproduced is not altered or made available in a manner that modifies the Content or presents the Content being reproduced in a false light and (iv) notice is made to the disclaimers included on the Content. The permission to re-copy does not allow for incorporation of any substantial portion of the Content in any work or publication, whether in hard copy, electronic or any other form or for commercial purposes.