The Asia-Pacific Antitrust Review 2013

Indonesia: Overview

Introduction Law No. 5 of 1999 on the Prohibition of Monopoly and Unfair Business Competition Practices (Indonesian Competition Law (ICL)) was introduced in March 1999 and entered into force one year later. The ICL has multiple objectives, which include securing public interest and national efficiency; providing equal business opportunity; preventing monopoly and unfair business competition practices; and creating effective and efficient business. In order to achieve these objectives, the ICL essentially prohibits all restrictive business practices, which are, under the current ICL, categorised into three sections comprising prohibited agreements, prohibited conducts and abuse of dominant position. Prohibited agreements cover agreements harming competition, such as those related to price fixing, market allocations, boycotts, tying-in and exclusive dealing. The ICL also prohibits business conducts hampering the competition, such as price and non-price discrimination, refusal to deal, bid rigging and misappropriation of business secrets. Finally, the ICL also stipulates the dominant position in the provisions relating to the prohibition of abuse of dominant position, interlocking directorates, cross-ownership and mergers and acquisitions.