Jakarta, January 17, 2026 — KPPU warned of potential risks of market distortion at the port within the Indonesia Morowali Industrial Park (IMIP), stressing that competition law enforcement is increasingly relevant in large-scale integrated industrial zones where port services are closely tied to production and distribution.
KPPU Chairman M. Fanshurullah Asa delivered the message during a public outreach event on Law No. 5/1999 in Morowali, Central Sulawesi, saying ports are strategic supply chain hubs and that competition risks emerge if access and services are not managed openly and on equal terms.
The Chairperson said that integrated industrial areas such as IMIP — combining mining activities, mineral processing and port services — present high complexity and require close monitoring, as interconnected business structures may create risks of monopolies, oligopolies, or control over strategic services if not managed under principles of openness and equal treatment.
“Ports are a strategic node in the supply chain. If access and services are not managed openly and equally, the risk of competition distortion will become increasingly real,” Fanshurullah said.
KPPU said that in integrated industrial zones, port services often intersect directly with production and distribution interests, creating potential risks linked to vertical integration, control of specific services and unequal access for other businesses. The authority said Law No. 5/1999 is designed to balance investment needs with safeguards for competitive market mechanisms so that the benefits of development can be more widely shared.
The authority’s head also pointed to the mining sector, which he said has consistently recorded the lowest Business Competition Index (IPU) scores over the past eight years, including in the 2025 measurement, indicating persistent structural challenges.
“Industrial growth must go hand in hand with healthy competition. Excessive concentration of economic power can create greater economic costs for other businesses and the public,” Fanshurullah said.
During the outreach session, KPPU highlighted several strategic issues it believes require joint attention, including potential monopolisation of port services, equal access for service users, transparency in tariff setting and exclusive agreements that may limit fair competition.
KPPU also encouraged IMIP operators and businesses to participate in a competition compliance programme as a preventive step to mitigate risks of violations early, supporting sustainable governance and providing greater legal certainty for market participants.
Source: https://kppu.go.id/wp-content/uploads/2026/01/Siaran-Pers-No.-01_KPPU-PR_I_2026.pdf
