Draft Bill on Anti-Monopoly: Case Submission to Investigators and Strengthening Administrative Sanctions

The Indonesian Chamber of Commerce and Industry (“ Kadin ”) has urged the need for adjustments to Article 44, paragraph (4) in the Draft Bill (“ Draft Bill on Anti-Monopoly ”) on amendment to Law No. 5 of 1999 on the Prohibition of Monopolistic Practices and Unfair Business Competition, as amended several times, most recently by Law No. 1 of 2026 (collectively referred to as “ Law 5/1999 ”). Such adjustments are considered important to provide certainty regarding the enforcement mechanism and the application of administrative sanctions, particularly concerning the submission of cases to Civil Servant Investigators (Penyidik Pegawai Negeri Sipil- “ PPNS ”) or Law Enforcement Officers (Aparat Penegak Hukum- “ APH ”).

“In Article 44, paragraph (4) of the Draft Bill on Anti-Monopoly, which maintains the submission of cases to investigators, it is necessary to clarify whether this applies solely to PPNS or also to APH institutions,” said M. Azis Syamsuddin, Deputy General Chairman, Coordinator for Legal Affairs and Human Rights as well as Facilities/Infrastructure of Kadin.

According to Azis, regulations regarding the submission of cases to investigators and the elimination of principal criminal sanctions need to be balanced with the formulation of clear administrative fine criteria and a structured enforcement mechanism. Administrative fines should be designed effectively and proportionally, based on criteria such as the relevance of turnover percentage, the degree of disparity, the impact on consumers and the market, and the recurrence of violations.

In addition, structural enforcement efforts are encouraged through strong compliance measures. He emphasized the need for regulations that take into account mandatory divestment in cases of extreme dominant positions, prohibition of certain business practices for a specified period, and the obligation to amend anti-competitive business policies.