Proposed Amendments to the Antimonopoly Draft Bill Related to Territory

The government has begun preparing the amendment to Law No. 5 of 1999 on Prohibition of Monopolistic Practices and Unfair Business Competition (“Law 5/1999”). One of the proposals is extraterritoriality. The absence of extraterritoriality has the potential to hinder the enforcement of business competition laws by actors outside the country.

“The dependence of business actors is still not widespread, so the dependence of business actors can be applied to entrepreneurs both inside and outside Indonesia,” said Manaek SM Pasaribu, Head of the Legal Bureau of the Business Competition Supervisory Commission (Komisi Pengawas Persaingan Usaha - “KPPU”), to Hukumonline.

An important aspect of extraterritoriality in law enforcement is the expansion of jurisdiction. Thus, competition law can also apply to parties in other countries that engage in anti-competitive practices, whose actions impact the national economy.