KPPU Chairman Introduces 'Asa Constant' Concept at Professor Inauguration

The Chairman of the Competition Supervisory Commission (KPPU), M. Fanshurullah Asa, has been inaugurated as an Honorary Professor in Civil Engineering with a specialisation in Construction Management by Sultan Agung Islamic University (UNISSULA). During his scientific oration, Ifan, as he is familiarly known, introduced a concept called the ‘Asa Constant’. The concept is a finding demonstrating that consistent improvements to management systems can increase economic productivity without the need for additional capital or new labour. The finding stems from research on the implementation of quality management systems, showing that good governance can generate cost efficiency, increase productivity, and provide a multiplier effect on the national production function.

‘Consistent improvements to management systems can increase economic output. This means productivity is not solely determined by additional capital and labour, but also by the quality of governance and management,’ Ifan stated in a written release on Monday (15/6/2026). According to him, modern economic development can no longer rely merely on investment and human resources. Technological advancement, governance quality, and a healthy business competition climate are equally important factors in driving sustainable economic growth.

In his scientific oration, Ifan explained that national development needs to be supported by three mutually reinforcing main pillars: production efficiency through economics and technology, governance quality through good management systems, and a competitive market structure through competition law and enforcement. These three pillars, he argued, must function harmoniously. Without efficiency, development becomes expensive. Without good governance, development loses direction. And without healthy business competition, development forfeits both fairness and its productivity drive. The Asa Constant shows that productivity gains do not always require large additional investments, but can also be achieved through strengthening governance, innovation, and fair business competition.

Ifan assessed that the construction, energy, and infrastructure sectors are clear examples of how governance and healthy business competition can determine development quality. Practices such as tender collusion, market entry barriers, and overly concentrated market structures can potentially increase development costs and reduce the benefits received by the public. Therefore, KPPU continues to push for stronger enforcement of competition law and the development of a Competition Compliance Programme as part of efforts to create a more competitive, efficient, and fair market.

Additionally, Ifan proposed eight strategic pillars to improve governance and competitiveness in the construction and energy sectors. These solutions include accelerating regulatory reform for government procurement of goods and services through the National Public Procurement Agency (LKPP), establishing a strong and sovereign Indonesian Engineers Council, strengthening the KPPU compliance programme, implementing the ISO 21500 standard as a mandatory requirement in the tender process, and integrating project management with Quality, Health, Safety, and Environment aspects. Further pillars include reforming the Construction Services Development Board (LPJK) through institutional strengthening and regulatory revision, optimising investment oversight for gas transmission and distribution through the implementation of BPH Migas Regulation Number 15 of 2019, and accelerating the development of household gas networks to four million connections integrated with the Three Million Homes Programme. All these pillars are directed towards creating more efficient, transparent, and competitive development, while simultaneously strengthening national productivity through good governance, modern management standards, and healthy business competition.