Competition & Antitrust

Follow Our Latest COVID-19 Updates

INDONESIA: KPPU Announces Relaxing of Competition Law Enforcement

In light of the current health crisis and as detailed in our previous client update (click here  to read), the Chairman of the Indonesia Competition Commission ("KPPU") has expressed his support for businesses to collaborate. Subsequently, on 9 November 2020, the KPPU published KPPU Regulation No. 3 of 2020 on the Relaxation of Legal Enforcement of Monopoly Practices and Unfair Business Competition and Monitoring of Partnership Implementation to Support the National Economic Recovery to specify the criteria and form of relaxation in its enforcement.

Under the new regulation, businesses can now benefit from the following relaxation:

1. procurement using State Budget or Regional Budget can be done to: (i) fulfil medical needs or provide supporting facilities to handle Covid-19, e.g. the procurement of medicine, vaccine, construction of emergency hospitals, the appointment of hotels or buildings for isolation, and other medical needs and supporting facilities to handle Covid-19; and (ii) distribute social assistance and social safety net from the government to the public;;
2. approval of an agreement, activity, and/or the use of dominant position to handle Covid-19 and/or to increase the economic ability of a business;
3. extension of the deadline to submit the mandatory post-closing notification to the KPPU from 30 to 60 business days as of the effective date; and
4. extension of the period of written warning in the partnership monitoring procedure from 14 to 30 business days.

    

INDONESIA: OMNIBUS LAW 2020: The Omnibus Law Removes Cap on Fines for Competition Law Violations

This is the third edition of the "Omnibus Law 2020: Overview Series", which highlights changes in the competition sector.

With the spotlight on sensitive items such as employment, the Indonesian Government, through the Omnibus Law, has also introduced changes to the Competition Law (Law No. 5 of 1999).

Key changes include the removal of the cap on fines and criminal sanctions for competition law violations, as well as the introduction of a new procedure when lodging an appeal in a competition case.

INDONESIA: Is there Room for Cartel and Collaboration in the New Normal?

Among the many devastating impacts, the COVID-19 outbreak has demonstrated how a pandemic can have a significant and adverse effect on economic activities, both from supply and demand perspectives. Market distortion, disruption of supply-chain and increasing demand for various healthcare products and services are among the main issues sparked by the pandemic.

In responding to these issues, businesses might have contemplated certain collaborative measures to aid in alleviating shortage, ensuring that the public receives reliable supply, helping themselves survive, and even achieve efficiency. However, businesses must be aware that the implementation of those joint measures are not without potential legal implications as they may be recognised as anti-competitive conduct under Indonesian Competition Law.

AHP recently held a webinar on this topic, with Mr. Kurnia Toha, the Chairman of the Indonesia Competition Commission (KPPU), as one of the panellists. This Update sets out the key takeaways from the webinar on any collaborative business measures, particularly those taken during the pandemic.