After the implementation of Law No. 11 of 2020 on Job Creation (“Job Creation Law”) and its implementing regulation, Government Regulation No. 44 of 2021 on the implementation of the prohibition of monopolistic practices and unfair business competition (“GR 44/2021”).

Any Objections Against KPPU Decisions Should Be Submitted To The Commercial Court.

Prior to the implementation of Job Creation Law and GR 44/2021 (“New laws”), Article 44 of law no. 5 of 1999 on the prohibition of monopolistic practices and unfair business competition (“Law 5/1999”), stipulates that business actors can submit an objection to the district court’s decision against the Business Competition Supervisory Commission (Komisi Pengawas Persaingan Usaha or “KPPU”). Under the New Laws, such objection should now be submitted to the commercial court instead of the District court.

Maximum Period For The Commercial Court and Supreme Court To Issue Decisions Is Removed

Under Article 45 law 5/1999, the district court and supreme court must issue their decisions within 30 days since the objection or the application of cassation is received.

The job creation law revokes the 30 days deadline for the issuance of decisions at the objection and cessation stage. However, under Article 19 (3) of GR No. 44/2021, the commercial court shall carry the examination of the objection within a minimum period of 3 months and a maximum of 12 months.

Limitation of Criminal Penalties and the Prioritization of Administrative Sanctions

Previously, Law 5/1999 stipulates criminal penalties which included criminal fine or detention to the violation of articles mentioned under Articles 48 (1) and (2).

Under the new laws, most of the criminal penalties are removed, and violations of the articles mentioned in articles 48 (1) and (2) are now subject to administrative sanctions.

Criminal penalties can still be imposed on business actors who refuse to be examined, refuse to provide the information required in the investigation and/or examination, or interfere with the process of investigation and/or examination under article 41 of law 5/1999.

Additional Criminal Penalties Are Removed

Additional criminal Penalties previously provided under Article 49 of Law 5/1999, which included:

  • revocation of business licenses;
  • prohibition of business actors proven to have violated law 5/1999 from filling the position of director or commissioner for at least 2 (two) years and no longer than 5 (five) years; or
  • cessation of certain activities or actions that cause losses to other parties.

The new laws do not recognize such additional criminal penalties for any violation of provisions under law 5/1999.

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