The Role of KPPU in Drafting Regulation of the Government Derived from the State-Owned Enterprises Law

Business Competition Supervisory Commission (“KPPU”) is involved in drafting regulation of the government derived from Law No. 16 of 2025 on the Fourth Amendment to Law No. 19 of 2003 (collectively referred to as “Law 19/2003”) on State-Owned Enterprises (“BUMN”).

“This government regulation is necessary to maintain a commitment to healthy business competition,” said Chairman of KPPU, M. Fanshurullah Asa, or Ifan, to Hukumonline.

According to Ifan, the derivative regulation of the government is necessary to further clarify the provisions on monopolies by BUMN in Law 19/2003. Article 86M of Law 19/2003 regulates that the granting of monopoly rights by the President to BUMN or their subsidiaries must take into account the aspect of fair business competition, while ensuring that BUMN continue to operate efficiently.

Currently, KPPU is still waiting and ensuring that it has been requested to be directly involved in the drafting process. “We have sent a letter to the President. The Minister of State Secretary has sent a letter to the State-Owned Enterprises Regulatory Agency to involve the KPPU in drafting the regulation of the government to explain Article 86M,” he said.