KPPU Points for Anti-Monopoly Bill

The Chairman of the Business Competition Supervisory Commission (“KPPU”), M. Fanshurullah Asa or Ifan, emphasized the need for special regulations on fines for large businesses that abuse Micro-, Small-, and Medium-Scale Enterprises (“UMKM”) through partnership programs.

“We want the fines for business actors involved in such partnerships to be higher, so that there is a deterrent effect,” Ifan told Hukumonline.

This input is set out in the draft amendment to Law No. 5 of 1999 on Prohibition of Monopolistic Practices and Unfair Business Competition (“Law 5/1999”) which is emphasized in a specific article. According to Ifan, the current maximum fines need to be increased for large and medium-scale businesses, as they are not yet significant enough to protect UMKM.

Although this provision is already included in the draft amendment to Law 5/1999, Ifan added that it is also necessary to revise Law No. 20 of 2008 on UMKM, as amended by Regulation of the Government in Lieu of Law No. 2 of 2022 (“Regulation on Job Creation”) on Job Creation (collectively referred to as “Law 20/2008”). The revision is intended to provide the KPPU with a strong legal basis to protect UMKM from abusive practices by large-scale businesses.

“This includes strengthening the KPPU's ability to impose more significant fines,” he said.