Comparative Guides

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4. Results: Answers
Trends and predictions
How would you describe the current cartel enforcement landscape and prevailing trends in your jurisdiction? Are any new developments anticipated in the next 12 months, including any proposed legislative reforms?

Answer ... The KPPU has been quite active in initiating investigations of non-bid-rigging cartels in the past five years. Some of those investigations have included Tyres (2014), Liquefied Petroleum Gas (2014), Cattle Imports (2015), Chicken (2016), Skutik (2016), Handling Tariffs (2016), Shipping Liners (2018), and Salt Industry (2019).

From its establishment, the KPPU has decided on 339 cases, and 260 of those cases, or 76.7%, are related to cartel practices (i.e. price fixing, output fixing, and bid-rigging).

At the time of writing, the Competition Law is in the process of being amended. However, the amendment has now been suspended due to the changes within the House of Representatives as the legislature, following the general election held in April 2019. Based on the latest draft, two new issues will be governed under the new law relating to cartel issues:

  • Leniency procedure: As mentioned in question 5.1, the current Competition Law does not provide for a leniency programme. However, according to the latest draft of the amended Competition Law, a whistle-blower may receive a reduction in fines under a new leniency programme. Leniency may also be granted to an undertaking that provides a confession.
  • Increase in administrative sanctions: The current Competition Law provides that the maximum penalty that can be imposed on each undertaking is IDR 25 billion. According to the latest draft of the amended law, the maximum penalty has been increased to 25% of the sales value during the period of infringement.

For more information about this answer please contact: HMBC Rikrik Rizkiyana from Assegaf Hamzah & Partners