The Government of Indonesia issued Government Regulation in lieu of Law No. 2 of 2022 on Job Creation on 30 December 2022 (“Job Creation GRL”). This opens the second act of the Omnibus Law following the scrutiny by the Constitutional Court of the formalities in the creation of the original Job Creation Law which was issued in 2020. Content-wise, the 1,117-page Job Creation GRL is a non-identical twin sibling of the original Job Creation Law with substantive changes on halal certification, employment, taxation, and regional government as well as some non-substantive changes in other sectors such as water resources.
KPPU, the Indonesian competition authority, issued 15 decisions this year, a decline from 23 decisions in 2021. Late merger filing cases still account for the majority of decisions, followed by small and micro enterprises partnership cases. The increasing number of SME partnership cases suggests closer scrutiny by KPPU of partnerships between big and medium corporations and SMEs, which is in line with KPPU’s priorities as the pandemic subsides.
The Digital Markets Act (EU Regulation 2022/1925) came into force on 1 November 2022, with the aim of promoting fair business practices in the digital industry in Europe. While the DMA itself may have no direct implication for Indonesia, the KPPU – Indonesia’s competition authority – often refers to developments and thought-leadership on enforcement from other prominent jurisdictions, including the EU. Digital businesses operating in Indonesia may use the DMA as a navigation tool, and clients may find the practical risk mitigation tips useful.
Detecting rigged bids once dominated the workload of KPPU, and while that may no longer be the case, the number of bid-rigging cases being handled by the KPPU at any given time remains relatively high. Recent enforcement cases have focused on construction and public procurement projects. Through these cases, KPPU has proven that it is adept in the area of technology – scrutinizing metadata and IP addresses of defendants to uncover evidence of collusion. Colluding to rig bids is an Article 22 violation under the Indonesian Competition Law, for which KPPU may impose a fine of IDR 1 billion or more.
Companies with effective Antitrust & Competition Compliance Programs may benefit from more lenient sanctions if KPPU finds an infringement in the future. KPPU Regulation No. 1 of 2022 on ACCP was issued earlier this year to provide further guidance for the implementation of Article 15(a) of Government Regulation No. 44 of 2021. To receive the compliance credit, it is important to ensure your ACCP meets the requirements of the KPPU Regulation and then secure the KPPU certification (a stipulation that will be valid for five years, and is renewable).
On 30 August 2022, the Indonesian competition authority (“KPPU”) issued Circular No. 9/KPPU/SE/VIII/2022, clarifying that it will accept apostilled foreign official documents.
Since Indonesia acceded to the Apostille Convention in 2021, The KPPU’s position on this has been unclear, particularly with regard to how powers of attorney issued abroad should be processed. With this Circular, it the authority has now confirmed that documents issued in a member state of the Apostille Convention will only need to be notarized and apostilled to be accepted by KPPU.
KPPU, Indonesia’s competition authority, is taking an increasingly aggressive stance, as seen in its latest decision on partnerships between a large corporation and small and micro enterprises. In that case, a maximum fine of IDR 10 billion (approx. USD 670,000) was imposed on a large corporation that was viewed by KPPU as controlling the SMEs it partners with. This recent development could indicate the start of a more rigorous approach to enforcement by KPPU against SME partnerships.