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

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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