Policy Statement

Law No. 5/1999 about Prohibition of Monopolistic Practices and Unfair Business Competitions draw up on March 5, 1999 and executed since September 5, 2000.

Objectives of this law are:

  1. Create a fair business competition in order to make an efficient market economic.
  2. Build a healthy trade climate through a law of fair business competition to guarantee the same opportunity to trade between business actors.
  3. Create a fair business competition climate between national business actors in order to able to compete in international market.

To control the implementation of Law No. 5/1999, government established The Commission for the Supervision of Business Competition (KPPU) through President Decree No. 75/1999. KPPU is a public institution, a law enforcement agency, and an independent arbiter on issues concerning business competition practices.KPPU is an independent authority established to supervise the implementation of the Law concerning the Prohibition of Monopolistic Practices and Unfair Business Competition. Independent from the influence and control of the Government and other parties, the KPPU's duties includes drafting implementing regulations, conducting examinations of any party alleged to have violated law No. 5/1999, issuing binding decisions, and imposing legal sanction(s) on any violator of the law.

The KPPU reports directly to the President and the People's Representative assembly (DPR). The KPPU that was inaugurated on June 7, 2000 consists of eleven members �� including �� a chairman and a vice-chairman �� whose appointments have been made with the approval of the DPR, with a five-year term of office.

The KPPU's supervision of the implementation of the Law concerning the Prohibition of Monopolistic Practices and Unfair Business Competition aims to give shape to an efficient Indonesia economy through the creation of a conducive business climate that ensures equal opportunities for all business actors. The KPPU also seeks, for the same purpose, to prevent monopolistic practices and/or unfair business competition.

The KPPU's efforts to ensure that every person doing business in Indonesia enjoys a healthy and equitable competitive situation are directed toward preventing the abuse of dominant position by certain business actor(s). Business opportunities resulting from the prevention of monopolistic practices will open wide consumers' opportunities to exercise their right to make appropriate choices. The resulting economic system ensuring equilibrium between business actors' inters and the public interests and the public interests will ultimately increase public welfare.

To do its duty and authority, KPPU have four functions in law and business competition, including:

  1. Legislative quasi : arrange implementation rules
  2. Executive quasi : implementing the rules
  3. Judicial quasi : overthrow sanction to business actors who break the law.
  4. Give suggestions and judgments toward government's policy about monopoly and unfair trade competition.

KPPU vision are to create fair business environment, equal opportunity in business sector, and create efficient and fair economy to achieve welfare society. To realize the vision, KPPU formulate 3 (three) mission :

  1. Supervise law no. 5/1999 implementation
  2. Internalize business competition value to business actor(s)
  3. Internalize business competition value to government regulation

The duties of the Commission shall include the following:

  1. Evaluate agreements that may result in monopolistic practices and/or and or unfair business competition as set forth in Article 4 up to and including Article 16;
  2. Evaluate business activities and/or and or actions of business actors which may result in monopolistic practices and/or and or unfair business competition as stipulated in Article 17 up to and including Article 24;
  3. Evaluate the existence or nonexistence of misuse of dominant position which may result in monopolistic practices and/or and or unfair business competition as set forth in Article 25 up to and including Article 28;
  4. Undertake actions in accordance with the authority of the Commission as set forth in Article 36;
  5. Provide advice and opinion concerning Government policies related to monopolistic practices and/or and or unfair business competition;
  6. Prepare guidelines and/or and or publications related to this Law;
  7. Submit periodic reports on the results of the Commission's work to the President and the People's Legislative Assembly (DPR).

The Commission's authority shall include the following :

  1. Receive reports from the public and/or and or business actors regarding allegations of the existence of monopolistic practices and/or and or unfair business competition;
  2. Conduct research concerning the possibility of the existence of business activities and/or and or actions of business actors which may result in monopolistic practices and/or and or unfair business competition;
  3. Conduct investigations and/or and or inspection hearings on allegations of cases of monopolistic practices and/or and or unfair business competition reported by the public or by business actors or discovered by the commission as a result of its research;
  4. Make conclusions regarding the results of its investigations and/or and or inspection hearings as to whether or not there are any monopolistic practices and/or and or unfair business competition;
  5. Summon business actors suspected of having violated the provisions of this law;
  6. Summon and invite witnesses, expert witnesses and any person deemed to have knowledge of violations of the provisions of this law;
  7. Seek the assistance of investigators to invite business actors, witnesses, expert witnesses, or any persons as intended in letter s ub-articles e and f of this article, who are not prepared to appear upon the commission's invitation;
  8. Request the statements of government institutions related to the investigations and/or and or hearings about business actors who violate the provisions of this law;
  9. Obtain, examine and/or and or evaluate letters, documents or other instruments of evidence for investigations and/or and or hearings;
  10. Determine and stipulate the existence or non-existence of losses on the parts of business actors or society;
  11. Announce the commission's decisions to business actors suspected of having engaged in monopoly practices and/or and or unfair business competition;
  12. Impose administrative sanctions on business actors violating the provisions of this Law.