Knowledge & Insights

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
d +65 6416 8014
e mark.choy@wongpartnership.com
Click here to see Mark’s CV.

Ameera ASHRAF
Head – Antitrust & Competition
d +65 6416 8113
e ameera.ashraf@wongpartnership.com
Click here to see Ameera’s CV.

James CHOO
Partner
d +65 6416 2418
e james.choo@wongpartnership.com
Click here to see James’s CV.

CHAN Jia Hui
Partner – Antitrust & Competition
d +65 6416 2794
e jiahui.chan@wongpartnership.com
Click here to see Jia Hui’s CV.

Dr Yozua MAKES
Founder and Managing Partner
d +62 21 547 7181
e ymakes@makeslaw.com
Click here to see Dr Yozua’s CV.

Iwan SETIAWAN
Senior Partner
e setiawan@makeslaw.com
Click here to see Iwan’s CV.

Fransisca
Partner
e fransisca@makeslaw.com
Click here to see Fransisca’s CV.

Billy BERNARDUS
Partner
e billy@makeslaw.com
Click here to see Billy’s CV.