Kppu Review

About Kppu

Kppu: A Leading Authority in Promoting Fair Competition

Kppu, or the Komisi Pengawas Persaingan Usaha, is an independent commission established by the Indonesian government to promote fair competition and protect consumers from anti-competitive practices. The commission was founded in 1999 and has since been instrumental in enforcing competition laws and regulations across various industries.

Kppu's primary objective is to ensure that businesses operate within a competitive environment that benefits both consumers and the economy as a whole. The commission achieves this by investigating anti-competitive practices such as price-fixing, market allocation, bid-rigging, and abuse of dominant positions.

One of Kppu's key functions is to regulate mergers and acquisitions to prevent monopolies from forming. The commission evaluates proposed mergers based on their potential impact on competition in the relevant market. If a merger is deemed likely to harm competition, Kppu may require divestitures or impose conditions on the merged entity's operations.

In addition to its regulatory role, Kppu also engages in advocacy efforts aimed at promoting fair competition. The commission conducts research on various aspects of competition policy and provides recommendations for improving Indonesia's regulatory framework.

Kppu also works closely with other government agencies such as the Ministry of Trade, Ministry of Industry, Investment Coordinating Board (BKPM), Financial Services Authority (OJK), Bank Indonesia (BI), National Consumer Protection Agency (BPKN), among others. This collaboration ensures that policies are aligned towards promoting fair competition across all sectors.

The Commission has been successful in enforcing its mandate over time through several landmark cases involving major companies operating within Indonesia’s borders. For instance:

1) In 2018 KPPU fined Grab Indonesia IDR 30 billion ($2 million) for violating antitrust laws after it acquired Uber’s Southeast Asian business.
2) In 2019 KPPU imposed fines totaling IDR 1.03 trillion ($73 million) on 12 companies for price-fixing in the cement industry.
3) In 2020 KPPU fined Gojek and Grab Indonesia IDR 30 billion ($2 million) each for violating antitrust laws by imposing exclusive contracts with their drivers.

Kppu's efforts have not gone unnoticed, as the commission has received recognition from various international organizations. In 2019, Kppu was awarded the ASEAN Competition Enforcer Award for its outstanding contribution to promoting competition in Southeast Asia.

In conclusion, Kppu plays a crucial role in promoting fair competition and protecting consumers' interests in Indonesia. The commission's regulatory and advocacy efforts have helped create a level playing field for businesses while ensuring that consumers benefit from competitive prices and quality products/services. As Indonesia continues to grow economically, Kppu will remain an essential institution that safeguards fair competition across all sectors of the economy.