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Komisi Pengawas Persaingan Usaha (KPPU) Issues Business Competition Compliance Program Regulations in Indonesia

The Business Competition Supervisory Commission or Komisi Pengawas Persaingan Usaha (KPPU) issued KPPU Regulation No. 1 of 2022 concerning the Business Competition Compliance Program, which has been in effect since the promulgation date on March 24, 2022, intending to increase the compliance of business actors with business competition law in Indonesia to support the company’s credibility in the international community. This regulation in Indonesia also provides an understanding of compliance, encourages business activities to be in line with competition, and provides guidance for business actors to develop their compliance programs.

The KPPU regulation also regulates the procedures for registering compliance programs to KPPU, implementing and evaluating compliance, and determining compliance programs, including the granting of waivers to fines that KPPU will impose if business actors who have registered their compliance programs are proven to have violated Law No. 5 of 1999 concerning the Prohibition of Monopolistic Practices and Unfair Business Competition.

KPPU Commissioner, M. Afif Hasbullah, explained that the Business Competition Compliance Program is a series of activities that must be prepared and developed by business actors who conduct business in Indonesia to demonstrate their compliance with the fair business competition principles in their business activities as a preventive measure. Compliance with business competition can maintain the good name and reputation of the company and can increase the confidence of investors and stakeholders.

Business actors in Indonesia can register their compliance program to KPPU for evaluation and determination. After the business actors register the program, the business actor shall report the implementation of the preparation for the compliance program, and KPPU will evaluate the performance of compliance program preparation through a Commission session. If improvements are needed, KPPU will return the report on implementing the compliance program preparation. If the report has been approved, KPPU will issue a Compliance Program Determination, which will be submitted in a Commission session. The determination of the Compliance Program is valid for 5 (five) years and can be extended.

The existence of a business competition compliance program is considered the best practice by various world business competition authorities to minimize the risk of violations by business actors and increasing the investment in Indonesia. Schinder Law Firm has had years of experience in the company law Indonesia and investment law in Indonesia, including legal compliance. If you have any inquiries related to business competition compliance, please drop us an email at info@schinderlawfirm.com.

Author: Dewi Susanti