CALCULATION OF ADMINISTRATIVE FINES FOR VIOLATION OF COMPETITION LAWS (Indonesia)

Author: Ichsan Montang

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Publisher: Nagashima Ohno & Tsunematsu

Journal / Book: NO&T Asia Legal Review No.38 (August, 2021)

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*Please note that this newsletter is for informational purposes only and does not constitute legal advice. In addition, it is based on information as of its date of publication and does not reflect information after such date. In particular, please also note that preliminary reports in this newsletter may differ from current interpretations and practice depending on the nature of the report.

Introduction
The amendment of Law No. 5 of 1999 on Prohibition of Monopolistic Practices and Unfair Business Competition (“Competition Law”) under Law No. 11 of 2020 on Job Creation (“Omnibus Law”) creates new rules in competition laws regime in Indonesia. One of the significant amendments was the omission of upper limit of administrative fines for the violation of the Competition Law.
Under the Competition Law, the administrative fine was set as minimum IDR 1billion and up to IDR 25billion. While the Omnibus Law retains the lower limit, the upper limit has now been omitted which has led to concerns about whether the Indonesian Business Competition Supervisory Commissioner/Komisi Pengawas Persaingan usaha (“KPPU”) was able to impose administrative fines without any limitation. These concerns were put to rest with the implementation of the Government Regulation No. 44 of 2021 on the Implementation of the Prohibition of Monopolistic Practices and Unfair Business Competition (“GR 44/2021”), pursuant to which it was clarified that the government still regulates the maximum amount of administrative fines for the violation of Competition Law.

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