The merger control regime in Indonesia is primarily regulated by Law No. 5 of 1999 on the Prohibition of Monopolistic and Unfair Business Competition Practices (“Law 5/1999”) and its implementing regulations. In Indonesia, this involves a mandatory post-completion notification regime for mergers, consolidations and acquisitions of shares (which result in a change of control), that exceed prescribed thresholds to determine whether the relevant transaction may result in monopolistic practices and/or unfair business competition. In October 2019, the Supervisory Business Competition Committee (Komisi Pengawasan Persaingan Usaha or KPPU) which oversees the implementation and enforcement of Law 5/1999, issued KPPU Regulation No. 3 of 2019 (“KPPU Regulation 3/2019”), which is the main implementing regulation of Law 5/1999. In connection with the mandatory post-completion notification, KPPU Regulation 3/2019 has amended certain merger control requirements in Indonesia, including stipulating that the acquisition of assets will also be subject to the mandatory post-completion notification.
Given the increase in KPPU’s exercise of its enforcement powers under Law 5/1999 in recent times and the introduction of KPPU Regulation 3/2019, we have, in this update, summarised the key parameters of the merger control regime in Indonesia that investors should be aware of when structuring their investments.
If you would like information or assistance on the above or any other area of law, you may wish to contact the Partner at WongPartnership or Makes whom you normally work with or any of the following Partners:
Mark CHOY
Partner
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e mark.choy@wongpartnership.com
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Ameera ASHRAF
Head – Antitrust & Competition
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James CHOO
Partner
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CHAN Jia Hui
Partner – Antitrust & Competition
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Dr Yozua MAKES
Founder and Managing Partner
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Iwan SETIAWAN
Senior Partner
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Fransisca
Partner
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Billy BERNARDUS
Partner
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