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Some Notes On the Development of Competition Law and Policy in Indonesia

Some Notes On the Development of Competition Law and Policy in Indonesia. Dr. Syamsul Maarif Justice, Indonesian Supreme Court Bali, 15 November 2011. DEVELOPMENT. Institution. Enforcement. CHALLENGES AHEAD. 1. Overview on Indonesian competition law.

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Some Notes On the Development of Competition Law and Policy in Indonesia

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  1. Some NotesOn the Development of Competition Law and Policy in Indonesia Dr. SyamsulMaarif Justice, Indonesian Supreme Court Bali, 15 November 2011

  2. DEVELOPMENT Institution Enforcement CHALLENGES AHEAD

  3. 1. Overview on Indonesian competition law

  4. The Adoption of General Competition Act

  5. The Law n. 5/1999 • Monopoly; • Monopsony; • Market Control; • Predatory Pricing; • Bid Rigging; • Conspiracy • Oligopoly; • Price Fixing; • RPM; • Market Division • Boycott; • Cartel; • Trust; • Oligopsony; • Vertical Integration; • Exclusive Dealing; • Agreement with Foreign Parties Art. 17-24 PROHIBITED ACTIVITIES Art. 4-16 PROHIBITED AGREEMENT • Abuse of Dominant Position; • Interlocking Directorate; • Cross Ownerships; • M & A Art. 25-29 ABUSE OF DOMINANT POSITION

  6. 2. Institution

  7. Staffing Number of staffs increased due to observed demand and available fund. To date, we accounted for 420 staffs work for KPPU (nation wide), where 108 of which are investigators. Number of staff

  8. Budget In billion rupiahs. The main KPPU’s budget comes from the state budget. KPPU’s budget is increased 2.500% within 11 years

  9. Performances (cont.) Number of Complaints and Decisions

  10. Number of Policy Advices

  11. Recommendations by Sector

  12. Effective Rate for Advocacy Policy Recommendations until June 2011 Total : 89 Year 2011 (june) : 4 Average in a Year : 8 Effective rate : 44 % • Policy change is fluctuated shows dynamic response of Government Position toward policy recommendation

  13. 3. Enforcement Time to settle competition cases Quality of KPPU judgment Fines and damages MoU with other agencies

  14. THE CHALLENGES AHEAD • Regulatory Environment • Legal System • Level of Economic Development

  15. Other Challenges Institutional Enforcement Large area Undefined status Challenges Less authority Low budget Limited time Data reliability Low public awareness Low government acceptance Advocacy

  16. Challenges in enforcement Indonesia is the biggest archipelago country in the world (17,508 islands). The law on autonomy and law on local government gave authority to the local government to develop its own territory, except for certain tasks such foreign politic, defense, national monetary, and religion. These potentially cause different economic policies amongst locals, and thus will create different challenges in enforcing competition law and policy. Representative offices act as the extension of main office to promote competition law and policy to locals, received complaints, and conduct research on local policies. Cases are handled by the main office, but the examination process might be conducted in the region.

  17. thank you!

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