• Alifia Putri

Business Competition Amid The Battle Against COVID-19

Updated: Aug 31

by Alifia Putri (alifia.putri@launcher.id) and Clara Viriya (clara.viriya@launcher.id)

Previously, Indonesian Competition Commission (“KPPU”) issued Decree Letter No. 10/KPPU/Kep.1/III/2020 on Temporary Suspension of Law Enforcement Activities in the KPPU Secretariat (“SK 10/KPPU/Kep.1/III/2020”), to prevent the spread of COVID-19 in KPPU area until 31 March 2020 and extended by Decree Letter No. 11/KPPU/Kep.1/III/2020 (“SK 11/KPPU/Kep.1/III/2020“), which indefinitely suspends law enforcement in KPPU, including Commission Panel, other cases handling, assessment activities, and merger & acquisition clarification, until 6 April 2020. KPPU also implemented suspension policies on notifications and merger & acquisition assessment from 17 March to 6 April 2020. The notification effective date, as well as the valuation period for merger & acquisition transactions, are not taken into account in this period.

On 6 April 2020, KPPU released Decree Letter No. 12 /KPPU/Kep.1/IV/2020 on Cases Handling during Emergency Situations triggered by COVID-19 Outbreak Disaster in Indonesia (“SK 12 /KPPU/Kep.1/IV/2”). Broadly speaking, this regulation includes the following:

1. States that SK 10/KPPU/Kep.1/III/2020 and SK 11/KPPU/Kep.1/III/2020 have been withdrawn and are no longer valid;

2. Revokes the suspension of law enforcement that was previously suspended by SK 10/KPPU/Kep.1/III/2020 and SK 11/KPPU/Kep.1/III/2020; and

3. The entire law enforcement activities in the KPPU sector during the COVID-19 outbreak in Indonesia are prioritized to be performed electronically.

By releasing SK 12 /KPPU/Kep.1/IV/2020, KPPU is now back on the move on 7 April 2020. To prevent the spread of COVID-19 during running operations, KPPU has introduced a range of policies, namely:

1. Converting the Public Service System to Online

KPPU converting the entire face-to-face public service to the online system. Currently, for public information requests, legal consultation for business competition and partnership, and application for research/internship/study visits may be submitted by e-mail to: infokom@kppu.go.id. While for the report of business competition and partnership infringement indication may be submitted by e-mail to: pengaduan@kppu.go.id.

2. Handling Cases Electronically

Also on 6 April 2020, KPPU released Commission Regulation No. 1 of 2020 on Handling Cases Electronically to implement the provision of SK No. 12 /KPPU/Kep.1/IV/2020. This regulation governing the electronic handling of KPPU cases, including:

  • Notification Assessment;

  • Partnership Supervision;

  • Business Competition Cases Handling;

  • Examination on Cases related to Delayed Notification of Merger or Consolidation of Business Entities and Takeover of Company Shares;

  • Examination on Partnership Cases; and

  • Commission Panel.

The whole set of cases referred to above can be handled electronically through visual teleconferences, electronic mail, and other electronic media, until further notice is given. The document submitted shall be in the form of electronic or softcopy documents. While other provisions are still following the previous related regulations.

3. Procurement of Goods and Services Related to COVID-19

Previously on 24 March 2020, KPPU issued Press Release No. 16/KPPU-PR/III/2020 to resolve the issue of procurement of goods and services related to COVID-19. The virus outbreak that currently occurring in Indonesia is considered as an emergency state in such a way as to gives the government authorities to carry out the procurement process through a direct appointment mechanism, as stipulated in the Public Procurement Policy Institution (“LKPP”) Regulation No. 13 of 2018 on Procurement of Goods/ Services in handling the Emergency State, and excluded from business competition law.

4. KPPU Maintaining Surveillance during COVID-19 Period

KPPU in coordination with related parties committed to keeping an eye on business competition, especially for staple commodities so that the market price will remain stable and not surging during the pandemic.

LID Advisory is a publication prepared by Launcher.id. It is intended to inform in general topics covered only, and should not be treated as a legal advice or relied upon when making business activities or investment decisions. Should you have any inquiries on the matters contained in LID Advisory, or other comments generally, please contact us at contact@launcher.id.