KPPU Calls for Accelerated Amendment of Competition Law

The Competition Supervisory Commission (KPPU) has stated that the amendment of Law Number 5 of 1999 concerning the Prohibition of Monopolistic Practices and Unfair Business Competition needs to be accelerated to strengthen oversight.

"This means the amendment is quite important and is our target to be completed this year," said KPPU Chairman Gopprera Panggabean in Jakarta on Wednesday. Gopprera noted that Law Number 5 of 1999 requires changes, considering the regulation is no longer relevant to current conditions, particularly regarding the digital economy ecosystem.

According to him, the existing articles cannot accommodate the digital economy, as the regulation was only applicable to the conventional economy, whereas the digital economy is currently growing rapidly. Therefore, Gopprera added, the KPPU is continuously striving to ensure the bill currently under discussion in the House of Representatives (DPR RI) can be passed soon.

"We are having considerable difficulty conducting oversight because we still refer to Law Number 5 of 1999. Moreover, the law does not regulate the digital economy," he stated. He cited an example, noting that Law Number 5 of 1999 regulates the selling and buying prices of goods or services, whereas the provisions in the digital economy are different.

He added that many entrepreneurs are currently burning cash in their ventures by selling goods or services for free, which certainly creates unfair business competition. He acknowledged that the state of the digital economy is also a particular concern in various parts of the world, so it is hoped the regulation or law can be passed soon to allow the KPPU to work optimally. "With the current regulations, there are many loopholes for lawyers to file appeals to the Commercial Court," he added.