Answer ... The parties will be given the opportunity to propose remedies during the evaluation stage of the post-merger notification. However, in its decision the Business Competition Supervisory Commission (KPPU) will ultimately determine the remedies (whether structural or behavioural) it deems necessary to address any competition concerns.
Answer ... The KPPU will prepare and provide a remedy assessment report containing a comprehensive analysis and reasoning for its conclusion as to whether the merger may give rise to anti-competitive effects. The party that is responsible for filing may submit a remedies proposal within 14 working days of the date of delivery of the remedy assessment report from the KPPU.
The remedies that can be proposed include structural remedies and behavioural remedies. Structural remedies include asset and share divestments and other conditions that may increase competition. Behavioural remedies include granting IP licences and increasing (potential) competition by reducing or removing barriers to entry (eg, unwinding exclusive contracts, reducing consumer switching costs and removing bundling/tying).
The KPPU will review the proposed remedies submitted. If it accepts the proposal, the KPPU will issue a favourable opinion with requirements that must be satisfied. If the KPPU does not accept the proposed remedies, it will issue an unfavourable opinion.
Answer ... Structural and/or behavioural remedies are rarely imposed on foreign mergers. Typically, where the KPPU believes that a foreign merger will have anti-competitive effects in a certain market in Indonesia, it will require the parties to submit regular annual reports to the KPPU on market share developments in Indonesia for three consecutive years following the conclusion of the foreign merger.