Legal Literacy - Have you ever heard of the institution KPPU (Komisi Pengawas Persaingan Usaha/Indonesia Competition Commission)? This article explains the urgency of strengthening the institutional status of the KPPU.

In the provisions of Article 30 to Article 37 of Law Number 5 of 1999 concerning the Prohibition of Monopolistic Practices and Unfair Business Competition, it is explicitly mandated that an independent institution be established, namely the Komisi Pengawas Persaingan Usaha (KPPU/Indonesia Competition Commission) which was established based on Presidential Decree of the Republic of Indonesia Number 75 of 1999. The KPPU is authorized to supervise and enforce the implementation of Law Number 5 of 1999 and resolve disputes related to business competition law.

Problems and Challenges in Enforcing Business Competition Law in Indonesia

The imperfection of the law in the provisions of Law Number 5 of 1999 as the basis for the KPPU's authority can be seen from the various shortcomings contained in the law, namely:

  1. The ambiguity of the KPPU's institutional status, both juridically and practically, whether it is classified as a legislative, judicial, or special institution. The appointment of civil servants as members of the KPPU is an urgency that must be clarified immediately so that the institution's operations can run optimally, so that KPPU members are bound by the oath or responsibility of office that must be upheld by every state official and do not freely resign from their positions;
    The regulation regarding the use of indirect evidence in resolving several cases handled by the KPPU must be further considered because the legal system in Indonesia does not recognize such a model of proof;
  2. The need for changes regarding the definition of legal subjects in business competition law in Indonesia because the law currently in force has not yet reached the interests of business actors who carry out business activities abroad. Thus, it needs to be expanded and adjusted to regulations in other countries so that business activities can keep up with international economic developments;
  3. Various government policies are considered to often trigger unhealthy business competition, such as the regulation of dispute resolution procedures at the KPPU which have not been systematized in a complete regulation, so several provisions need to be harmonized in order to create a healthier business competition climate.