Indonesia’s competition watchdog has launched the third edition of its Competition Law Textbook, signalling a major shift in how competition enforcement will respond to the rapid transformation of markets driven by digitalisation, algorithms and artificial intelligence.
The Komisi Pengawas Persaingan Usaha (KPPU) unveiled the updated textbook in Jakarta on Wednesday, saying conventional approaches to competition law are no longer sufficient to address increasingly complex and technology-driven business conduct.
KPPU Chair M. Fanshurullah Asa said the evolution of business behaviour, the dominance of digital platforms and the penetration of AI have fundamentally changed how markets operate and how competition should be supervised.
“Markets no longer work in conventional ways,” Fanshurullah said. “Digitalisation and algorithms require much sharper, evidence-based legal and economic analysis that is relevant to modern business practices”.
The revised textbook marks a shift towards post-Chicago and neo-structuralist approaches to competition enforcement, placing greater emphasis on analysing firm behaviour and economic effects rather than relying solely on market structure. According to KPPU, this approach is necessary to address sophisticated anti-competitive conduct emerging in digital and data-driven markets.
The new edition includes substantial updates for businesses and practitioners, particularly in relation to competition law in the digital economy and the implications of artificial intelligence on market behaviour. It also reflects regulatory changes following the enactment of the Job Creation Law (Law No. 6 of 2023), which altered administrative sanctions and objection mechanisms in competition cases.
Other updates cover merger and acquisition notification rules, interpretations of bid-rigging involving third parties, market definition, and the application of the essential facilities doctrine. The textbook also highlights newer KPPU instruments, including competition policy assessments, the competition index, compliance programmes, enforcement of SME partnership rules and developments in ASEAN competition regimes.
As part of the launch, KPPU signed a memorandum of understanding with the Ministry of Higher Education, Science and Technology to integrate competition law more systematically into university curricula. The collaboration aims to ensure future legal and economic professionals share a common understanding of competition principles and market dynamics.
Minister of Higher Education, Science and Technology Brian Yuliarto welcomed the initiative, saying the partnership would strengthen interdisciplinary learning and support national economic priorities, including safeguarding state resources and promoting fair and innovative competition.
KPPU said the launch of the third edition sends a strong signal to businesses and investors that Indonesia is committed to building a fair, competitive and sustainable business environment. In an era of rapid innovation, the agency stressed that competition law must function as a safeguard for innovation rather than an obstacle to it.
Source: https://kppu.go.id/wp-content/uploads/2025/12/Siaran-Pers-No.-077_KPPU-PR_XII_2025.pdf
