KPPU Regulation: Exclusive Agreements

The Business Competition Supervisory Commission (“Commission”) has issued Regulation No. 5 of 2011 on the Guidelines for Article 15 (Exclusive Agreements) of Law No. 5 of 1999 on the Prohibition of Monopolistic Practices and Unfair Business Competition (“Regulation”). Exclusive agreements (Perjanjian Tertutup) are regulated because they can be used to increase market power and disturb healthy business competition, ultimately harming consumers. However, exclusive agreements are not always harmful. The purpose of the Regulation is to provide stakeholders with a common understanding of Article 15 of Law No.5 of 1999 (“Law 5/1999”) in order to understand when an exclusive agreement is prohibited.