The Komisi Pengawas Persaingan Usaha (KPPU) has called for amendments to Indonesia’s competition law and stronger institutional powers during a meeting with former president Joko Widodo in Solo.
KPPU Chair M. Fanshurullah Asa and other commissioners met Widodo on 22 April to discuss regulatory reforms aimed at strengthening competition oversight and boosting competitiveness in key sectors.
Push for competition law reform
During the meeting, the authority highlighted the need to accelerate amendments to Law No. 5 of 1999 on the Prohibition of Monopolistic Practices and Unfair Business Competition, which forms the basis of the country’s antitrust regime.
KPPU said the proposed changes would help modernise the framework in response to evolving economic conditions, including developments in the digital economy and challenges in sectors such as natural gas and construction.
Widodo expressed support for revising the law, saying stronger competition enforcement is necessary to maintain a healthy business environment.
“The presence of KPPU is important in reminding large businesses to prioritise efficiency in conducting business,” Widodo said, noting that large firms sometimes benefit from regulatory protections.
Institutional strengthening also discussed
The meeting also addressed the need to strengthen the commission’s institutional capacity. KPPU officials welcomed Presidential Regulation No. 100 of 2024, signed by Widodo in September 2024, which reforms staffing arrangements in the KPPU Secretariat.
According to the authority, the regulation represents an initial step toward improving the organisation’s ability to oversee competition more effectively.
KPPU said it is also seeking stronger powers to provide policy advice to the government on measures affecting national economic efficiency and the role of state-owned enterprises.
Focus on prevention and policy
Fanshurullah Asa said the authority is increasingly focusing on preventive measures, encouraging the government to adopt policies that promote competition and improve market efficiency.
“Strengthening KPPU’s authority is necessary, including in providing recommendations to the government regarding policies that affect national efficiency and the strengthening of state-owned enterprises,” he said.
The meeting underscored the regulator’s intention to continue advocating for competitive markets as a foundation for national economic competitiveness and consumer welfare, KPPU said.
