Pre-merger Notification Planned in Revised Anti-Monopoly Law

The Business Competition Supervisory Commission (Komisi Pengawas Persaingan Usaha – “KPPU”) is discussing pre-merger notification as one of the clauses in the revision of Law No. 5 of 1999 on the Prohibition of Monopolistic Practices and Unfair Business Competition, as amended by Regulation of the Government in Lieu of Law No. 2 of 2022 on Job Creation (collectively referred to as “UU 5/1999”).

This aims to make the reporting obligations for merger, consolidation, and acquisition activities more effective. KPPU as a supervisory institution can also ensure that mergers do not conflict with business competition regulations.

Currently, Indonesia is implementing post-merger notification. Ideally, KPPU can first assess the impact of the merger on the national market, so that it can provide legal certainty for business actors.

"This is very inappropriate and less effective when (business actors) merge, then KPPU assesses it," said Head of the KPPU Legal Bureau, Manaek SM Pasaribu, to Hukumonline.

The pre-merger scheme is also important because there needs to be simple technical provisions that do not hinder business activities or cancel merger intentions. This proposal will adjust to current conditions.

"Because almost all business competition authorities apply pre-merger notification," said Manaek.