LAW NUMBER 5 YEAR 1999
CONCERNING
THE PROHIBITION OF MONOPOLISTIC PRACTICES
ANDUNFAIR BUSINESS COMPETITION
COMMISSION FOR THE SUPERVISION OF BUSINESS COMPETITIONOF THE REPUBLIC OF INDONESIA
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2 LAW OF THE REPUBLIC OF THE REPUBLIC OF INDONESIA NUMBER 5 YEAR 1999
LAW OF THE REPUBLIC OF THE REPUBLIC OF INDONESIA NUMBER 5 YEAR 1999 3
Content
1. LAW OF THE REPUBLIC OF INDONESIA NUMBER 5 YEAR 1999 CONCERNING THE PROHIBITION OF MONOPOLISTIC PRACTICES AND UNFAIR BUSINESS COMPETITION
CHAPTER I General Provisions 8
CHAPTER II Principles and Purposes 10
CHAPTER III Prohibited Agreements 11
CHAPTERIV ProhibitedActivities 15
CHAPTERV DominantPosition 17
CHAPTERVI CommissionfortheSupervisionofBusinessCompetition 19
CHAPTER VII Case Handling Procedure 23
CHAPTERVIII Sanctions 27
CHAPTER IX Miscellaneous Provisions 28
CHAPTERX TransitionalProvisions 29
CHAPTER XI Closing Provisions 30
2. ELUCIDATION ON THE LAW OF THE REPUBLIC OF INDONESIA NUMBER 5 YEAR 1999 CONCERNING THE PROHIBITION OF MONOPOLISTIC PRACTICES AND UNFAIR BUSINESS COMPETITION
General 33
ArticlebyArticle 35
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LAW OF THE REPUBLIC OF THE REPUBLIC OF INDONESIA NUMBER 5 YEAR 1999 5
LAW OF THE REPUBLIC OF INDONESIANUMBER 5 YEAR 1999
CONCERNINGTHE PROHIBITION
OF MONOPOLISTIC PRACTICES
AND UNFAIR BUSINESS COMPETITION
6 LAW OF THE REPUBLIC OF THE REPUBLIC OF INDONESIA NUMBER 5 YEAR 1999
LAW OF THE REPUBLIC OF THE REPUBLIC OF INDONESIA NUMBER 5 YEAR 1999 7
THE PRESIDENT OF THE REPUBLIC INDONESIA
LAW OF THE REPUBLIC OF INDONESIA NUMBER 5 YEAR 1999
CONCERNINGTHE PROHIBITION OF MONOPOLISTIC PRACTICES AND
UNFAIR BUSINESS COMPETITION
BY THE GRACE OF THE ALMIGHTY GOD
THE PRESIDENT OF THE REPUBLIC OF INDONESIA,
Considering: a. whereasdevelopmentinthefieldofeconomymustbedirectedtowards the achievement of the people’s welfare based on Pancasilaandthe1945Constitution;
b. whereasdemocracy in thefieldofeconomycalls forequalopportunityforeverycitizentoparticipateintheprocessofproductionandmarketingofgoodsandorservices,inafair,effectiveandefficientbusinessenvironment,soastobeabletopromoteeconomicgrowthandthefunctioningofareasonablemarketeconomy;
c. whereas anyone engaging in business in Indonesia must be in theconditionoffairandnormalcompetition,thusnotcausingaconcentrationofeconomicpoweraroundcertainbusinessactors, while observing the commitments made by the State of theRepublic of Indonesiawith regard to InternationalConventions;
d. whereasinordertoachievethemattersasintendedinitemsa,bandc,basedon the initiativeproposedby theDewanPerwakilanRakyat (People’s LegislativeAssembly), a Lawconcerning theProhibitionofMonopolistic Practices andUnfairBusinessCompetitionneedstobeformulated;
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Inviewof: Article 5 paragraph (1), Article 21 paragraph (1), Article 27paragraph(2)andArticle33ofthe1945Constitution,
With the approval ofTHE PEOPLE’S LEGISLATIVE ASSEMBLY
OF THE REPUBLIC OF INDONESIA
HAS DECIDED TO:
Stipulate: LAW CONCERNING THE PROHIBITION OF MONOPOLISTIC PRACTICES AND UNFAIR BUSINESS COMPETITION
CHAPTER I GENERAL PROVISIONS
Article 1
Referred to in this law as:
1. Monopolyshallbecontroloftheproductionandormarketingofgoodsandortheuse of certain services by one business actor or by one group of business actors.
2. Monopolisticpractices shall be the concentrationof economicpowerbyoneormorebusinessactors,resultinginthecontroloftheproductionandormarketingofcertaingoodsandorservices thuscausingunfairbusinesscompetitionandbeingpotentiallyharmfultothepublicinterest.
3. Thecentralizationofeconomicpowershallbetheactualcontrolofamarketbyone or more business actors, enabling them to determine the price of goods and or services.
4. Dominantpositionshallbeaconditioninwhichabusinessactorhasnosubstantialcompetitorsintherelevantmarketinrelationtothemarketsharecontrolled,orabusinessactorhasthehighestpositionamongitscompetitorsintherelevantmarketintermsoffinancialcapacity,capacitytoaccesssupplyorsales,andthecapability to adjust supply or demand of certain goods or services.
5. Businessactorsshallbeanyindividualorbusinessentity,eitherincorporatedornotincorporatedaslegalentity,establishedanddomiciledorconductingactivitieswithin the jurisdictionof the stateof theRepublicof Indonesia,eitherindividuallyorjointlybasedonagreement,conductingvariousbusinessactivitiesinthefieldofeconomy.
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6. Unfairbusinesscompetitionshallbecompetitionamongbusinessactors inconductingactivities for theproductionandormarketingofgoodsandorservicesinanunfairorunlawfulmannerimpedingcompetition.
7. Agreementshallbetheactofoneormorebusinessactorstobindthemselveswithoneormoreotherbusinessactorsunderanyname,eitherinwritingorinnon-writtenform.
8. Conspiracyorbusinessconspiracyshallbeaformofcooperationundertakenbyonebusinessactorwithanotherwiththeintentionofcontrollingtherelevantmarketintheinterestoftheconspiringbusinessactors.
9. Marketshallbeaneconomicinstitutioninwhichsellersandbuyersareabletoconduct,eitherdirectlyorindirectly,transactionsforthetradingofgoodsand or services.
10. Relevantmarketshallbethemarketrelatedtoacertainmarketingrangeorarea by business actors in respect of goods and or services of the same or similartypeorsubstitutesforsuchgoodsandorservices.
11. Marketstructureshallbemarketconditionsprovidingindicatorsofaspectshavingsignificantimpactonbusinessactors’behaviorandmarketperformance,among other things the number of sellers and buyers, barriers to enter and exit themarket,productvariety,distributionsystem,andmarketsharecontrol.
12. Marketbehavior shall be conductundertakenbybusiness actors in theircapacity as suppliers or buyers of goods and or services with the aim of achievingthecompany’sobjectives,amongotherthingsforgainingprofits,increasingassets,salestargetsandcompetitionmethodsapplied.
13. Marketshareshallbethepercentageofthesaleorpurchasevalueofcertaingoodsorservicescontrolledbyacertainbusinessactorintherelevantmarketwithin a certain calendar year.
14. Marketpriceshallbethepricepaidintransactionsofgoodsandorservicesinaccordancewiththeagreementreachedamongthepartiesconcernedintherelevantmarket.
15. Consumersshallbeanyuserandorutilizerofgoodsandorservices,eitherfortheirowninterestorfortheinterestofotherparties.
16. Goods shall be any physical objects, either tangible or intangible, movable or immovable,whichcanbetraded,used,utilizedorexploitedbyconsumersorbusiness actors.
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17. Servicesshallbeanyservicesintheformofworkorperformancetradedinsocietywiththepurposeofbeingutilizedbyconsumersorbusinessactors.
18. CommissionfortheSupervisionofBusinessCompetitionshallbeacommissionformedtooverseebusinessactorsinconductingtheirbusinessactivitiesinordertoensurethattheydonotconductmonopolisticpracticesandorunfairbusinesscompetition.
19. District Court shall be the court, as intendedunder applicable laws andregulations,atthelegaldomicileofthebusinessofthebusinessactorsconcerned.
CHAPTER II PRINCIPLES AND PURPOSES
Article 2
Businessactors in Indonesiamustconduct theirbusinessactivitiesbasedontheprinciplesofeconomicdemocracy,withdueobservanceoftheequilibriumbetweenthe interests of business actors and the public interest.
Article 3
Thepurposesofenactingthislawshallbeasfollows:
a. safeguardthepublicinterestandenhancetheefficiencyofthenationaleconomyasoneoftheendeavorsaimedatimprovingthepeople’swelfare;
b. createaconducivebusinessclimatebyregulatingfairbusinesscompetitioninordertoensurecertaintyinequalbusinessopportunitiesforlarge-,middle-aswellassmall-scalebusinessactors;
c. preventmonopolisticpracticesandorunfairbusinesscompetitioncausedbybusinessactors;and
d. creatingeffectivenessandefficiencyinbusinessactivities.
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CHAPTER III PROHIBITED AGREEMENTS
Part One
Oligopoly
Article 4
(1) Businessactorsshallbeprohibitedfromenteringintoagreementswithotherbusinessactorsforjointlycontrollingtheproductionandormarketingofgoodsandorserviceswhichmaypotentiallycausetheoccurrenceofmonopolisticpracticesandorunfairbusinesscompetition.
(2) Businessactorsshallbereasonablysuspectedordeemedtobejointlyinvolvedinthecontroloftheproductionandormarketingofgoodsandorservices,asintendedinparagraph(1),if2(two)or3(three)businessactorsoragroupofbusinessactorscontrolmorethan75%(seventy-fivepercent)ofthemarketshare of a certain type of goods or services.
Part Two
Price Fixing
Article 5
(1) Businessactorsshallbeprohibitedfromenteringintoagreementswiththeirbusinesscompetitorstofixthepriceofcertaingoodsandorserviceswhichmustbepaidbyconsumersorcustomersinthesamerelevantmarket.
(2) Theprovisionsintendedinparagraph(1)shallnotbeapplicabletothefollowing:
a. anagreemententeredintointhecontextofajointventure;or
b. an agreement entered into based on prevailing laws.
Article 6
Business actors shall be prohibited from entering into agreements causing a buyer havingtopayapricewhichisdifferentfromthatpayablebyotherbuyersforthesame goods and or services.
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Article 7
Business actors shall be prohibited from entering into agreements with their business competitorstofixpricesbelowmarketprices,whichmaypotentiallycauseunfairbusinesscompetition.
Article 8
Business actors shall be prohibited from entering into agreements with other business actorssettingforththeconditionthatpartiesreceivingthegoodsandorservicesshall not sell or resupply the goods and or services received by them, at a price lower thanthecontractedprice,potentiallycausingunfairbusinesscompetition.
Part Three
Dividing Territories
Article 9
Business actors shall be prohibited from entering into agreements with their business competitorswhichhavethepurposeofdividingmarketingterritoriesorallocatingthemarketforgoodsandorservices,potentiallycausingmonopolisticpracticesandorunfairbusinesscompetition.
Part Four
Boycott
Article 10
(1) Businessactorsshallbeprohibitedfromenteringintoagreementswiththeirbusinesscompetitorswhichmayimpedeotherbusinessactorsinengaginginthesamebusiness,eitherfordomesticoroverseasmarketpurposes.
(2) Businessactorsshallbeprohibitedfromenteringintoagreementswiththeirbusinesscompetitorstorefusetosellanygoodsandorservicesofotherbusinessactors, whereby such act:
a. causesalossormaybesuspectedofpotentiallycausingalosstootherbusinessactors;or
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b. poses constraint on other business actors in selling or buying any goods andorservicesfromtherelevantmarket.
Part Five
Cartel
Article 11
Business actors shall be prohibited from entering into agreements with their business competitors,withtheintentionofinfluencingpricesbyarrangingtheproductionandormarketingofcertaingoodsandorservices,whichmaycausemonopolisticpracticesandorunfairbusinesscompetition.
Part Six
Trust
Article 12
Business actors shall be prohibited from entering into agreements with other business actorstoengageincooperationbyestablishingajointcompanyoralargercompany,bykeepingandmaintainingthecontinuityofeachrespectivecompanyoritsmembers,withtheaimofcontrollingtheproductionandormarketingofgoodsandorservices,whichmaycausemonopolisticpracticesandorunfairbusinesscompetition.
Part Seven
Oligopsony
Article 13
(1) Businessactorsshallbeprohibitedfromenteringintoagreementswithotherbusinessactorswiththeaimofjointlycontrollingthepurchaseoracquisitionofsuppliesinordertocontrolpricesofgoodsandorservicesintherelevantmarket,whichmaycausemonopolisticpracticesandorunfairbusinesscompetition.
(2) Businessactorsshallbereasonablysuspectedordeemedtobejointlycontrollingthepurchaseoracquisitionofsuppliesasintendedinparagraph(1)if2(two)or3(three)businessactorsoragroupofbusinessactorscontrolmorethan75%(seventy-fivepercent)ofthemarketshareofacertaintypeofgoodsorservices.
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Part Eight
Vertical Integration
Article 14
Business actors shall be prohibited from entering into agreements with other business actorswith theaimof controlling theproductionof several goods constitutingproductswhichareincludedintheproductionchainofcertainrelatedgoodsandorserviceswherebyeachproductionseriesistheendproductofprocessingorfurtherprocessing,eitherinadirectorindirectseries,whichmaypotentiallycauseunfairbusinesscompetitionandormaybeharmfultosociety.
Part Nine
Exclusive Dealing
Article 15
(1) Businessactorsshallbeprohibitedfromenteringintoagreementswithotherbusinessactorssettingforththeconditionthatthepartyreceivingthegoodsandorservicesshallonlyresupplyorshallrefrainfromresupplyingtheaforementionedgoodsandorservicestocertainpartiesandoratacertainplace.
(2) Businessactorsshallbeprohibitedfromenteringintoagreementswithotherpartiessettingforththeconditionthatthepartyreceivingcertaingoodsandorservices must be prepared to purchase other goods and or services from the supplying business actor.
(3) Businessactorsshallbeprohibitedfromenteringintoagreementsconcerningpricesorcertainpricediscountsforgoodsandorservices,settingforththecondition that thebusinessactor receivinggoodsandor services from thesupplying business actor:
a. must be prepared to purchase other goods and or services from the supplyingbusinessactor;or
b. shall not purchase the same or similar goods and or services from other businessactorsthatarethecompetitorsofthesupplyingbusinessactor.
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Part Ten
Agreements With Foreign Parties
Article 16
Businessactorsshallbeprohibitedfromenteringintoagreementswithotherpartiesoverseassettingforthconditionswhichmaycausemonopolisticpracticesandorunfairbusinesscompetition.
CHAPTER IV PROHIBITED ACTIVITIES
Part One
Monopoly
Article 17
(1) Businessactors shallbeprohibited fromcontrolling theproductionandormarketingofgoodsandorserviceswhichmaycausemonopolisticpracticesandorunfairbusinesscompetition.
(2) Business actors shall be reasonably suspected or deemed to control theproductionandormarketingofgoodsandorservicesasintendedinparagraph(1)inthefollowingevents:
a. thereisnosubstituteavailableyetforthegoodsandorservicesconcerned;or
b. causing other business actors to be unable to enter into business competitionforthesamegoodsandorservices;or
c. onebusinessactororagroupofbusinessactorscontrolsmorethan50%(fiftypercent)ofthemarketshareofacertaintypeofgoodsorservices.
Part TwoMonopsony
Article 18
(1) Businessactorsshallbeprohibitedfromcontrollingtheacquisitionofsuppliesorfromactingassolebuyerofgoodsandorservicesintherelevantmarketwhichmaypotentiallycausemonopolisticpracticesandorunfairbusinesscompetition.
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(2) Business actors shall be reasonably suspected or deemed to control theacquisitionofsuppliesortobeactingassolebuyerasintendedinparagraph(1)ifonebusinessactororagroupofbusinessactorscontrolsmorethan50%(fiftypercent)ofthemarketshareofacertaintypeofgoodsorservices.
Part ThreeMarket Control
Article 19
Businessactorsshallbeprohibitedfromengaginginoneorseveralactivities,eitherindividuallyor jointlywithotherbusinessactors,whichmaycausemonopolisticpracticesandorunfairbusinesscompetition,intheformofthefollowing:
a. reject andor impedecertainotherbusinessactors in conducting the samebusinessactivitiesintherelevantmarket;or
b. impedeconsumersorcustomersoftheircompetitorsinengaginginabusinessrelationshipwithsuchbusinesscompetitors;or
c. restrainthedistributionandorsalesofgoodsandorservicesintherelevantmarket;or
d. engageindiscriminatorypracticesagainstcertainbusinessactors.
Article 20
Business actors shall be prohibited from supplying goods and or services at a price belowcostorbysettingextremelylowpriceswiththeaimofeliminatingorruiningthebusinessoftheircompetitorsintherelevantmarketwhichmaycausemonopolisticpracticesandorunfairbusinesscompetition.
Article 21
Businessactorsshallbeprohibitedfromengaginginunfairpracticesindeterminingproductioncostandothercostsaspartofthepricecomponentofgoodsandorserviceswhichmaypotentiallycauseunfairbusinesscompetition.
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Part FourConspiracy
Article 22
Businessactorsshallbeprohibitedfromconspiringwithotherpartieswiththeaimofdeterminingtheawardeesoftenderswhichmaycauseunfairbusinesscompetition.
Article 23
Businessactorsshallbeprohibitedfromconspiringwithotherpartieswiththeaimofobtaininginformationregardingthebusinessactivitiesoftheircompetitorsclassifiedascompanysecretwhichmaycauseunfairbusinesscompetition.
Article 24
Businessactorsshallbeprohibitedfromconspiringwithotherpartiesinordertoimpedetheproductionandormarketingofgoodsandorservicesoftheircompetitorswiththeaimofcausingthegoodsandorservicesofferedorsuppliedintherelevantmarkettodiminish,eitherinthequantity,qualityortimelinessrequired.
CHAPTER V DOMINANT POSITION
Part One
General
Article 25
(1) Businessactorsshallbeprohibitedfromusingdominantpositioneitherdirectlyor indirectly to:
a. determine theconditionsof tradingwith theaimofpreventingandorimpedingconsumersfromobtainingcompetitivegoodsandorservices,bothintermsofpriceaswellasquality;or
b. restrainthemarketandtechnologydevelopment;or
c. hamperotherpotentialbusinessactorsfromenteringtherelevantmarket.
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(2) Businessactorsshallhaveadominantpositionasintendedinparagraph(1)inthe following events:
a. onebusinessactororagroupofbusinessactorscontrolsmorethan50%(fiftypercent)ofthemarketshareofacertaintypeofgoodsorservices;or
b. two or three business actors or a group of business actors control more than75%(seventy-fivepercent)ofthemarketshareofacertaintypeofgoods or services.
Part TwoInterlocking Directorate
Article 26
Apersonholding theposition as amember of theboardof directors or as acommissioner of a company, shall be prohibited from concurrently holding the positionasamemberoftheboardofdirectorsoracommissionerinanothercompany,in the event that such companies:
a. areinthesamerelevantmarket;or
b. haveastrongconnectioninthefieldandortypeofbusinessactivitiesconcerned;or
c. are jointly capableof controlling themarket shareof certain goodsandorservices,
whichmayresultinmonopolisticpracticesandorunfairbusinesscompetition.
Part ThreeShare Ownership
Article 27
Business actors shall be prohibited from owning majority shares in several companies ofthesametypeconductingbusinessactivitiesinthesamefieldinthesamerelevantmarket,orfromestablishingseveralcompanieswiththesamebusinessactivitiesinthesamerelevantmarket,ifsuchownershipcauses:
a. onebusinessactororagroupofbusinessactorstocontrolmorethan50%(fiftypercent)ofthemarketshareofacertaintypeofgoodsorservices;
b. twoorthreebusinessactorsoragroupofbusinessactorstocontrolmorethan75%(seventy-fivepercent)ofthemarketshareofacertaintypeofgoodsorservices.
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Part FourMergers, Consolidations and Acquisitions
Article 28
(1) Businessactorsshallbeprohibitedfromconductingmergersorconsolidationsofbusinessentitieswhichmaycausemonopolisticpracticesandorunfairbusinesscompetition.
(2) Businessactorsshallbeprohibitedfromconductingtheacquisitionofsharesinothercompaniesifsuchactionmaycausemonopolisticpracticesandorunfairbusinesscompetition.
(3) Furtherprovisionsregardingtheprohibitionofmergersorconsolidationsofbusinessentitiesasintendedinparagraph(1),andprovisionsconcerningtheacquisitionofshares incompaniesas intendedinparagraph(2)shallbesetforthinaGovernmentRegulation.
Article 29
(1) TheCommissionmustbenotifiedofmergersor consolidationsofbusinessentities,oracquisitionofsharesasintendedinArticle28resultingintheassetvalue and or selling price thereof exceeding a certain amount, by no later than 30(thirty)daysfromthedateofsuchmerger,consolidationoracquisition.
(2) Provisionsregardingthedeterminationoftheassetvalueandorthesellingpriceaswellastheprocedureforgivingnoticeasintendedinparagraph(1)shallbesetforthinaGovernmentRegulation.
CHAPTER VICOMMISSION FOR THE SUPERVISION OF BUSINESS COMPETITION
Part OneStatus
Article 30
(1) ACommissionfortheSupervisionofBusinessCompetition,hereinafterreferredastheCommission,shallbeformedtooverseetheimplementationofthisLaw.
(2) TheCommissionshallbeanindependentinstitutionfreefromtheinfluenceandauthorityoftheGovernmentandotherparties.
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(3) TheCommissionshallberesponsibletothePresident.
Part TwoMembership
Article 31
(1) TheCommissionshallconsistofaChairpersonactingconcurrentlyasmember,aViceChairpersonactingconcurrentlyasmember,andnotlessthan7(seven)members.
(2) MembersoftheCommissionshallbeappointedanddismissedbythePresidentupontheapprovalofthePeople’sLegislativeAssembly.
(3) MembersoftheCommissionshallbeappointedforatermofofficeof5(five)yearsandtheyshallbeeligibleforreappointmentfor1(one)subsequenttermofoffice.
(4) IfduetotheexpirationofthetermofofficeavacancyoccursintheCommission’smembership, the termofofficeofmembersmaybeextendeduntilanewmember is appointed.
Article 32
TherequirementsformembershipintheCommissionshallbeasfollows:
a. citizenoftheRepublicofIndonesia,atleast30(thirty)yearsofageandnotolderthan60(sixty)yearsatthetimeofappointment;
b. loyaltoPancasilaandthe1945Constitution;
c. believesinanddevotedtoTheAlmightyGod;
d. honest,fairandhavinggoodconduct;
e. residingwithintheterritoryoftheStateoftheRepublicofIndonesia;
f. experiencedinthefieldofbusinessorpossessingknowledgeandexpertiseinthefieldoflawandoreconomics;
g. hasneverbeenconvictedofacrime;
h. hasneverbeendeclaredbankruptbyacourtofjustice;and
i. isnotaffiliatedwithaparticularbusinessentity.
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Article 33
Membership in the Commission shall terminate due to the following reasons:
a. demise;
b. resignationupontheperson’sownrequest;
c. residingoutsidetheterritoryofthestateoftheRepublicofIndonesia;
d. continuousphysicalormentalillness;
e. expirationoftermofmembershipintheCommission;or
f. dismissal.
Article 34
(1) TheformationoftheCommissionanditsorganizationalstructure,dutiesandfunctionsshallbestipulatedbyaPresidentialDecree.
(2) Fortheuninterruptedimplementationofitsduties,theCommissionshallbeassisted by a secretariat.
(3) TheCommissionmayformaworkinggroup.
(4) Provisionsregardingtheorganizationalstructure,dutiesandfunctionsofthesecretariatandworkinggroupshallbefurtherregulatedinadecisionoftheCommission.
Part ThreeDuties
Article 35
ThedutiesoftheCommissionshallincludethefollowing:
a. assessagreements thatmay result inmonopolisticpracticesandorunfairbusinesscompetitionassetforthinArticle4uptoandincludingArticle16;
b. assessbusinessactivitiesandoractionsofbusinessactorswhichmaycausemonopolisticpracticesandorunfairbusinesscompetitionasstipulatedinArticle17uptoandincludingArticle24;
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c. assesstheexistenceorabsenceoftheabuseofdominantpositionwhichmaycausemonopolisticpracticesandorunfairbusinesscompetitionassetforthinArticle25uptoandincludingArticle28;
d. undertakeactionsinaccordancewiththeCommission’sauthorityassetforthinArticle36;
e. provide advice and opinion concerning Government policies related to monopolisticpracticesandorunfairbusinesscompetition;
f. prepareguidelinesandorpublicationsrelatedtothisLaw;
g. submitperiodicreportsontheresultsoftheCommission’sworktothePresidentandthePeople’sLegislativeAssembly.
Part FourAuthorities
Article 36
TheCommission’sauthoritiesshallincludethefollowing:
a. receivereportsfromthepublicandorbusinessactorsregardingallegationsoftheexistenceofmonopolisticpracticesandorunfairbusinesscompetition;
b. conductresearchconcerningallegationsoftheexistenceofbusinessactivitiesandoractionsofbusinessactorswhichmaycausemonopolisticpracticesandorunfairbusinesscompetition;
c. conductinvestigationandorexaminationofallegationsofcasesofmonopolisticpracticesandorunfairbusinesscompetitionreportedbythepublicorbybusinessactorsordiscoveredbytheCommissionasaresultofitsresearch;
d. makeconclusionsregardingtheresultsofitsinvestigationandorexaminationastowhetherornotthereareanymonopolisticpracticesandorunfairbusinesscompetition;
e. summonbusinessactorsallegedofhavingviolatedtheprovisionsofthislaw;
f. summon and present witnesses, expert witnesses, and any persons deemed to haveknowledgeabouttheviolationoftheprovisionsofthislaw;
g. seek the assistanceof investigators topresent business actors,witnesses,expertwitnesses,oranypersonsasintendedinsub-articleseandf,whoarenotpreparedtoappearinresponsetotheCommission’ssummons;
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h. requestthestatementofGovernmentinstitutionsrelatedtotheinvestigationandorexaminationofbusinessactorswhohaveviolatedtheprovisionsofthislaw;
i. obtain, examineandor assess letters, documentsor other instrumentsofevidenceforthepurposeofinvestigationandorexamination;
j. determineandstipulatetheexistenceornon-existenceof lossessufferedbyotherbusinessactorsorsociety;
k. notifythebusinessactorsallegedofhavingengagedinmonopolisticpracticesandorunfairbusinesscompetitionabouttheCommission’sdecisions;
l. imposeadministrativesanctionsonbusinessactorsviolatingtheprovisionsofthis Law.
Part Five
Funding
Article 37
ExpensesrelatedtotheperformanceoftheCommission’sdutiesshallbechargedtotheStateRevenuesandExpendituresBudgetandorothersourcespermittedbyapplicablelawsandregulations.
CHAPTER VIICASE HANDLING PROCEDURE
Article 38
(1) AnypersonhavingknowledgeoftheoccurrenceoforreasonablysuspectingthataviolationofthisLawhasoccurred,mayreportitinwritingtotheCommissionwithaclearstatementconcerningtheoccurrenceofviolation,attachingtheidentityofthereportingparty.
(2) ApartysufferinglossesasaresultoftheviolationofthisLawmayfileawrittenreport to the Commission with a complete and clear statement regarding the occurrenceofviolationandthelossesinflicted,attachingtheidentityofthereportingparty.
(3) Theidentityofthereportingpartyasintendedinparagraph(1)mustbekeptconfidentialbytheCommission.
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(4) Thereportingprocedureasintendedinparagraph(1)andparagraph(2)shallbestipulatedfurtherbytheCommission.
Article 39
(1) BasedonthereportasintendedinArticle38paragraph(1)andparagraph(2),theCommissionshallbeobligatedtoconductapreliminaryexamination,andwithin30(thirty)daysafterreceivingthereportconcerned,theCommissionshallbeobligatedtodeterminewhetherornotfollow-upexaminationisrequired.
(2) Infollow-upexamination,theCommissionshallbeobligatedtoexaminethebusinessactoragainstwhomthereportwasfiled.
(3) TheCommissionshallbeobligatedtokeepconfidentialtheinformationobtainedfrombusinessactorsclassifiedascompanysecret.
(4) Ifdeemednecessary,theCommissionmayhearthestatementofwitnesses,expertwitnessesandorotherparties.
(5) Inconductingactivitiesasintendedinparagraph(2)andparagraph(4),membersof the Commission shall be provided with warrants.
Article 40
(1) TheCommissionmayconductexaminationofbusinessactors if there isanallegationoftheoccurrenceofviolationsofthisLaweventhoughnoreportisfiled.
(2) Examinationsasintendedinparagraph(1)shallbeconductedincompliancewiththeproceduresetforthinArticle39.
Article 41
(1) Businessactorsandorotherpartiesexamined shallbe required to submitinstrumentsofevidencerequiredintheinvestigationandorexamination.
(2) Businessactorsshallbeprohibitedfromrefusingtobeexamined,fromrefusingtoprovideinformationrequiredforinvestigationandorexamination,orfromimpedingtheinvestigationandorexaminationprocess.
(3) Violations of the provisions of paragraph (2) shall be submitted by the
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Commissiontoacriminalinvestigatorforconductingcriminalinvestigationinaccordance with prevailing provisions.
Article 42
InstrumentsofevidenceininvestigationsbytheCommissionshallbeintheformof the following:
a. witness statement,
b. expert statement,
c. lettersandordocuments,
d. indication,
e. statement by business actors.
Article 43
(1) TheCommissionshallbeobligatedtocompletefollow-upexaminationwithin60(sixty)daysfromthestartoffollow-upexaminationasintendedinArticle39paragraph(1).
(2) Ifrequired,thetimeframeforfollow-upexaminationasintendedinparagraph(1)maybeextendedbynotmorethan30(thirty)days.
(3) TheCommissionshallbeobligatedtodeterminewhetherornotaviolationofthisLawoccurredwithin30(thirty)daysfromthecompletionoffollow-upexaminationasintendedinparagraph(1)orparagraph(2).
(4) TheCommission’sdecisionasintendedinparagraph(3)mustbereadoutinahearingopentothepublicandthebusinessactorconcernedmustbenotifiedforthwith thereof.
Article 44
(1) Within30(thirty)daysfromthetimeatwhichthebusinessactorconcernedreceivesnoticeabout theCommission’sdecisionas intended inArticle43paragraph(4),thebusinessactorconcernedshallbeobligatedtoimplement
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suchdecisionandtosubmitareportontheimplementationofthesametothe Commission.
(2) ThebusinessactorconcernedmayappealtotheDistrictCourtbynolaterthan14(fourteen)daysafterreceivingnotificationoftheaforementioneddecision.
(3) Abusinessactornotappealingwithinthetimeframeasintendedinparagraph(2)shallbedeemedtohaveacceptedtheCommission’sdecision.
(4) In theeventthat theprovisionsofparagraph(1)andparagraph(2)arenotimplemented by the business actor concerned, the Commission shall submit suchdecisiontoacriminalinvestigatorforconductingacriminalinvestigationinaccordancewiththeprovisionsofprevailinglawsandregulations.
(5) TheCommission’sdecisionsasintendedinArticle43paragraph(4)shallserveassufficientinitialevidenceforacriminalinvestigatortoconductinvestigation.
Article 45
(1) TheDistrictCourtconcernedmustexamineappealsfiledbybusinessactorsasintendedinArticle44paragraph(2)within14(fourteen)daysasfromthereceipt of the appeal concerned.
(2) TheDistrictCourtmustrenderadecisionwithin30(thirty)daysasfromthecommencementoftheexaminationoftheaforementionedappeal.
(3) ApartyfilinganappealinrespectoftheDistrictCourt’sdecisionasintendedinparagraph(2),mayappealtotheSupremeCourtoftheRepublicofIndonesiawithin14(fourteen)days.
(4) TheSupremeCourtmustrenderadecisionwithin30(thirty)daysfromthetimeat which the appeal is received.
Article 46
(1) Intheeventthatthereisnoappeal,theCommission’sdecisionasintendedinArticle43paragraph(3)shallhavepermanentlegalforce.
(2) A stipulationon theexecutionof theCommission’sdecisionas intended inparagraph(1)shallberequestedfromtheDistrictCourt.
LAW OF THE REPUBLIC OF THE REPUBLIC OF INDONESIA NUMBER 5 YEAR 1999 27
CHAPTER VIII SANCTIONS
Part One
Administrative Measures
Article 47
(1) TheCommissionshallbeauthorizedtoimposesanctionsintheformofadministrativemeasuresagainstbusinessactorsviolatingtheprovisionsofthisLaw.
(2) Administrativemeasuresasintendedinparagraph(1)maybeintheformofthe following:
a. stipulationontheannulmentofagreementsasintendedinArticle4uptoandincludingArticle13,Article15andArticle16;andor
b. ordertobusinessactorstoceaseverticalintegrationasintendedinArticle14;andor
c. order to business actors to cease activities proven to have caused monopolisticpracticesandorunfairbusinesscompetitionandorbeingharmfultosociety;andor
d. orderingbusinessactorstoceasetheabuseofdominantposition;andor
e. stipulationon theannulmentofmergersor consolidationsofbusinessentitiesandacquisitionofsharesasintendedinArticle28;andor
f. stipulationonthepaymentofcompensationforlosses;andor
g. impositionofafineofnotlessthanRp.1,000,000,000,-(Rupiahonebillion)andnotmorethanRp.25,000,000,000,-(Rupiahtwenty-fivebillion).
Part Two
Principal Criminal Sanctions
Article 48
(1) ViolationsoftheprovisionsofArticle4,Article9uptoandincludingArticle14,Article16uptoandincludingArticle19,Article25,Article27,andArticle28shallbesubjecttothecriminalsanctionofafineofnotlessthanRp25,000,000,000,-(Rupiahtwenty-fivebillion)andnotmorethanRp100,000,000,000,-(Rupiah
28 LAW OF THE REPUBLIC OF THE REPUBLIC OF INDONESIA NUMBER 5 YEAR 1999
onehundredbillion),orthecriminalsanctionofimprisonmentasareplacementoffinefornolongerthan6(six)months.
(2) ViolationsoftheprovisionsofArticle5uptoandincludingArticle8,Article15,Article20uptoandincludingArticle24,andArticle26ofthisLawshallbesubjecttothecriminalsanctionofafineofnotlessthanRp.5,000,000,000,-(Rupiahfivebillion)ornotmorethanRp.25,000,000,000,-(Rupiahtwenty-fivebillion),oracriminalsanctionofimprisonmentasreplacementoffinefornolongerthan5(five)months.
(3) ViolationsoftheprovisionsofArticle41ofthisLawshallbesubjecttoafineofnot less thanRp.1,000,000,000,- (Rupiahonebillion)andnotmorethanRp.5,000,000,000,-(Rupiahfivebillion)orthecriminalsanctionofimprisonmentasreplacementoffinefornolongerthan3(three)months.
Part Three
Additional Criminal Sanctions
Article 49
IncompliancewiththeprovisionsofArticle10oftheCriminalCode,inadditiontothecriminalsanctionsassetforthinArticle48,additionalcriminalsanctionsmaybe imposed in the form of the following:
a. revocationofbusinesslicenses;or
b. prohibitionofbusinessactorsproventohaveviolatedthislawfromfillingthepositionofdirectororcommissionerforatleast2(two)yearsandfornolongerthan5(five)years;or
c. ordertoceasecertainactivitiesoractionscausinglossestootherparties.
CHAPTER IX MISCELLANEOUS PROVISIONS
Article 50
Excluded from the provisions of this law shall be the following:
a. actions and or agreements aimed at implementing applicable laws and regulations;or
LAW OF THE REPUBLIC OF THE REPUBLIC OF INDONESIA NUMBER 5 YEAR 1999 29
b. agreements related to intellectual property rights, such as licenses, patents, trademarks,copyright,industrialproductdesign,integratedelectroniccircuits,andtradesecretsaswellasagreementsrelatedtofranchise;or
c. agreementsforthestipulationoftechnicalstandardsofgoodsandorserviceswhichdonotrestrain,andordonotimpedecompetition;or
d. agencyagreementswhichdonotstipulatetheresupplyofgoodsandorservicesatapricelevellowerthanthecontractedprice;or
e. cooperationagreements in thefieldof research forraisingor improvingthelivingstandardofsocietyatlarge;or
f. internationalagreementsratifiedbytheGovernmentoftheRepublicofIndonesia;or
g. export-orientedagreementsandoractionsnotdisruptingdomesticneedsandorsupplies;or
h. businessactorsofthesmall-scalegroup;or
i. activitiesofcooperativeswiththespecificaimofservingtheirmembers.
Article 51
Monopoly andor concentrationof activities related to theproduction andormarketingofgoodsandorservicesaffectingthelivelihoodofsocietyatlargeaswellasbranchesofproductionofstrategicimportancetothestateshallbestipulatedinalawandshallbeimplementedbyState-OwnedEnterprisesandorinstitutionsformed or appointed by the Government.
CHAPTER X TRANSITIONAL PROVISIONS
Article 52
(1) AsfromthetimeatwhichthisLawbecomeseffective,alllawsandregulationsregulatingor relatedtomonopolisticpracticesandorbusinesscompetitionshallbedeclaredas remaining ineffect insofarasnot contradictoryornotsuperseded by new ones by virtue of this Law.
(2) Businessactorshavingenteredintoagreementsandorconductingactivitiesandorundertakingactionsnotcomplyingwiththeprovisionsofthislawshallbegiven6(six)monthsfromthisLaw’scomingintoeffecttomakeadjustments.
30 LAW OF THE REPUBLIC OF THE REPUBLIC OF INDONESIA NUMBER 5 YEAR 1999
CHAPTER XI CLOSING PROVISIONS
Article 53
ThisLawshallbecomeeffectivewithin1(one)yearasfromitsenactment.
For public cognizance, it is hereby ordered that this Lawbe promulgated byannouncementintheStateGazetteoftheStateoftheRepublicofIndonesia.
RatifiedinJakartaonMarch5,1999
THE PRESIDENT OF THE REPUBLIC OF INDONESIA
sgd.
BACHARUDDINJUSUFHABIBIE
EnactedinJakartaOnMarch5,1999
STATE MINISTER SECRETARY OFSTATE OF THE REPUBLIC OF INDONESIA
sgd.
AKBARTANDJUNG
STATEGAZETTEOFTHEREPUBLICOFINDONESIAYEAR1999NUMBER 33
Issued as true copy
CABINET SECRETARIAT OF THE REPUBLIC OF INDONESIA Head of the Legislature Bureau I
LambockV.Nahattands
ELUCIDATION ON THE LAW OF THE REPUBLIC OF THE REPUBLIC OF INDONESIA NUMBER 5 YEAR 1999 31
ELUCIDATION ON THE LAW OF THE
REPUBLIC OF INDONESIA NUMBER 5 YEAR 1999
CONCERNINGTHE PROHIBITION
OF MONOPOLISTIC PRACTICES AND UNFAIR BUSINESS COMPETITION
32 ELUCIDATION ON THE LAW OF THE REPUBLIC OF THE REPUBLIC OF INDONESIA NUMBER 5 YEAR 1999
ELUCIDATION ON THE LAW OF THE REPUBLIC OF THE REPUBLIC OF INDONESIA NUMBER 5 YEAR 1999 33
THE PRESIDENT OF THE REPUBLIC INDONESIA
ELUCIDATION ONTHE LAW OF THE REPUBLIC OF INDONESIA
NUMBER 5 YEAR 1999CONCERNING
THE PROHIBITION OF MONOPOLISTIC PRACTICES AND UNFAIR BUSINESS COMPETITION
GENERALEconomicdevelopmentintheFirstLongTermDevelopmenthasresultedinsubstantialprogress, manifested in among other things the improvement of the people’s welfare. Theaforementionedprogressachieved indevelopmenthasbeen supportedbydevelopmentpoliciesinvariousfields,includingpoliciesinthefieldofeconomyasset forth in the Broad Outlines of State Policy and the Five Year Development Plan, as well as in various other economic policies.
DespitethesubstantialprogressachievedintheFirstLongTermDevelopment,asreflectedinhigheconomicgrowth,therearestillmanychallengesorunresolvedissues,especiallyineconomicdevelopment,alongsidethetrendofglobalizationintheeconomyandthedynamicsanddevelopmentofprivatebusinessessincetheearly1990s.
In reality, thebusinessopportunitiescreatedduring the last threedecadeshavenotbeenable toensure thatall levelsof societyparticipate indevelopment invarious economic sectors. The development of the private sector during the above mentionedperiodhasontheonehandbeenmarkedbyvariousformsofnotfullyappropriateGovernmentpoliciesleadingtomarketdistortions.Ontheotherhand,the development of the private sector has in fact been mainly the result of unfair businesscompetitionconditions.
The above described phenomena have developed and have been supported by the relationshipbetweendecision-makersandbusinessactors,eitherdirectlyorindirectly,leadingtothefurtherdeteriorationofthesituation.TheimplementationofnationaleconomyhasnotfullyadheredtothemandateofArticle33ofthe1945Constitution,andhasshownahighlymonopolistictendency.
34 ELUCIDATION ON THE LAW OF THE REPUBLIC OF THE REPUBLIC OF INDONESIA NUMBER 5 YEAR 1999
Businessmenclosetotheeliteofpowerhaveobtainedexcessivefacilitiesresultingin thecreationofasocialgap.Theemergenceofconglomeratesandagroupofstrong businessmen not supported by the spirit of real entrepreneurship has been one of the factors which have caused the economic resilience to become extremely vulnerableanduncompetitive.
Inviewoftheabovesituationandconditions,thereisaneedforustostudyandreorganizebusinessactivitiesinIndonesia,enablingbusinessestogrowanddevelopinafairandappropriateway,leadingtothecreationofafairbusinesscompetitionclimate,andtoavoidtheconcentrationofeconomicpoweraroundcertainindividualsorgroups,amongotherthings, intheformofmonopolisticpracticesandunfairbusinesscompetitionharmfultosociety,whicharecontradictorytotheidealsofsocialjustice.
Therefore, it is necessary to formulate the LawConcerning theProhibitionofMonopolisticPracticesandUnfairBusinessCompetitionintendedtoupholdtheruleoflawandtoprovideequalprotectiontoeverybusinessactorinanefforttocreatefairbusinesscompetition.
This lawprovides for assurancesof legal certainty for stimulating further rapideconomic development in an effort to improve general welfare, as well as in implementationofthespiritandsoulofthe1945Constitution.
Foraneffectiveimplementationofthislawandimplementingregulationsthereofinaccordancewithitsprinciplesandobjectives,thereisaneedtoformaCommissionfortheSupervisionofBusinessCompetition,namelyanindependentinstitutionfreefromthe influenceofthegovernmentandotherparties,havingtheauthoritytoconductsupervisionofbusinesscompetitionandtoimposesanctions.Suchsanctionsshallbeintheformofadministrativemeasures,whereascriminalsanctionsshallbeundertheauthorityofthecourtofjustice.
Ingeneral, thesubstanceof theLawConcerningtheProhibitionofMonopolisticPracticesandUnfairBusinessCompetitionconsistsof6(six)partsbeingregulatednamely as follows:
1. prohibitedagreements;
2. prohibitedactions;
3. dominantposition;
4. CommissionfortheSupervisionofBusinessCompetition;
5. lawenforcement;
6. miscellaneous provisions.
ELUCIDATION ON THE LAW OF THE REPUBLIC OF THE REPUBLIC OF INDONESIA NUMBER 5 YEAR 1999 35
This lawhasbeenformulatedbasedontheprinciplesofPancasilaandthe1945Constitution,andithasbeenbasedonhtprinciplesofeconomicdemocracywithdueobservanceoftheequilibriumbetweentheinterestsofbusinessactorsandthepublicinterestwiththeaimto:safe-guardpublicinterestandprotectconsumers;developaconducivebusinessclimatethroughthecreationoffairbusinesscompetition,andensurecertaintyinequalbusinessopportunityforeveryperson;preventmonopolisticpracticesandorunfairbusinesscompetitioncausedbybusinessactors;andcreateeffectivenessandefficiency inbusinessactivities inthecontextof improvingtheefficiencyofthenationaleconomyasoneoftheendeavorsinthecontextofenhancingthe people’s welfare.
ARTICLE BY ARTICLEArticle1
Sub-Article1 Self-explanatory
Sub-Article2 Self-explanatory
Sub-Article3 Self-explanatory
Sub-Article4 Self-explanatory
Sub-Article5 Self-explanatory
Sub-Article6 Self-explanatory
Sub-Article7 Self-explanatory
Sub-Article8 Self-explanatory
Sub-Article9 Self-explanatory
Sub-Article10 Self-explanatory
36 ELUCIDATION ON THE LAW OF THE REPUBLIC OF THE REPUBLIC OF INDONESIA NUMBER 5 YEAR 1999
Sub-Article11 Self-explanatory
Sub-Article12 Self-explanatory
Sub-Article13 Self-explanatory
Sub-Article14 Self-explanatory
Sub-Article15 Self-explanatory
Sub-Article16 Self-explanatory
Sub-Article17 Self-explanatory
Sub-Article18 Self-explanatory
Sub-Article19 Self-explanatory
Article2 Self-explanatory
Article3 Self-explanatory
Article4
Paragraph(1) Self-explanatory
Paragraph(2) Self-explanatory
Article5 Paragraph(1) Self-explanatory
ELUCIDATION ON THE LAW OF THE REPUBLIC OF THE REPUBLIC OF INDONESIA NUMBER 5 YEAR 1999 37
Paragraph(2) Self-explanatory
Article6 Self-explanatory
Article7 Self-explanatory
Article8 Self-explanatory
Article9Agreementsmaybe verticalorhorizontal innature. Suchagreements areprohibitedbecausebusinessactorseliminateorreducecompetitionbydividingthemarketormarketallocation.Marketingterritoriesmaymeantheterritoryof the state of the Republic of Indonesia, or parts of the territory of the state of the Republic of Indonesia, for example regency, province, or other regional territories.Dividingmarketingterritoriesormarketallocationmeansdividingterritories with the aim of obtaining or supplying goods, services, or goods and services,determining theparties fromwhichgoods, services,orgoodsandservices may be obtained or supplied.
Article10
Paragraph(1) Self-explanatory
Paragraph(2) Self-explanatory
Article11 Self-explanatory
Article12 Self-explanatory
38 ELUCIDATION ON THE LAW OF THE REPUBLIC OF THE REPUBLIC OF INDONESIA NUMBER 5 YEAR 1999
Article13 Paragraph(1) Self-explanatory
Paragraph(2) Self-explanatory
Article14
Referredtoascontrollingtheproductionofanumberofproductsbeingpartofaproductionchainwhicharenormallyreferredtoasverticalintegrationshallbethecontrolofaproductionprocessseriesofcertaingoodsfromupstreamtodownstreamoraprocesscontinuingforcertainservicesbycertainbusinessactors.Eventhoughverticalintegrationpracticesmayresultinlowpricedgoodsandservices, thesecancauseunfairbusinesscompetitionwhich isharmfultothebuildingblocksofthesociety’seconomy.Suchpracticesareprohibitedinsofarastheycauseunfairbusinesscompetitionandorareharmfultosociety.
Article15
Paragraph(1)Referred to as supplying shall include the procurement of sup- plies, either in the form of goods or services, in the context of sale and purchase, lease, leasepurchaseandleasingactivities.
Paragraph(2) Self-explanatory
Paragraph(3) Sub-Paragraph a Self-explanatory
Sub-Paragraph b Self-explanatory
Article16 Self-explanatory
Article17
Paragraph(1) Self-explanatory
ELUCIDATION ON THE LAW OF THE REPUBLIC OF THE REPUBLIC OF INDONESIA NUMBER 5 YEAR 1999 39
Paragraph(2) Sub-Paragraph a Self-explanatory
Sub-Paragraph bReferred to as other business actors shall be business actors possessingsignificantcompetitivecapacityintherelevantmarket.
Sub-Paragraph c Self-explanatory
Article18
Paragraph(1) Self-explanatory
Paragraph(2) Self-explanatory
Article19
Sub-ArticleaIt is not allowed to reject or impede certain business actors in an unreasonable manner or for non-economic reasons, for example due to differenceinethnicgroup,race,socialstatus,andothers.
Sub-Articleb Self-explanatory
Sub-Articlec Self-explanatory
Sub-Articled Self-explanatory
Article20 Self-explanatory
Article21Unfairpracticesindeterminingproductioncostandothercostsshallbeviolationofprevailinglawsandregulationswiththeaimofobtainingproductionfactorcosts which are lower than the actual cost.
40 ELUCIDATION ON THE LAW OF THE REPUBLIC OF THE REPUBLIC OF INDONESIA NUMBER 5 YEAR 1999
Article22Tendersshallbebidssubmittedtocontractcertainwork,fortheprocurementof goods, or the provision of services.
Article23 Self-explanatory
Article24 Self-explanatory
Article25
Paragraph(1)
Sub-Paragraph a Self-explanatory
Sub-Paragraph b Self-explanatory
Sub-Paragraph c Self-explanatory
Paragraph(2)
Sub-Paragraph a Self-explanatory
Sub-Paragraph b Self-explanatory
Article26
Sub-Articlea Self-explanatory
Sub-ArticlebCompanies shall be closely related if such companies support each other or areindirectcontactintheprocessofproduction,marketing,orproductionandmarketing.
Sub-Articlec Self-explanatory
ELUCIDATION ON THE LAW OF THE REPUBLIC OF THE REPUBLIC OF INDONESIA NUMBER 5 YEAR 1999 41
Article27
Sub-Articlea Self-explanatory
Sub-Articleb Self-explanatory
Article28
Paragraph(1)Business entities shall be companies or forms of business, either incorporatedas legal entities (e.g., limited liability companies)ornotincorporatedas legal entities,engaging ina typeofbusinesswhich ispermanentandcontinuous innature,with thepurposeof generatingprofits.
Paragraph(2) Self-explanatory
Paragraph(3) Self-explanatory
Article29
Paragraph(1) Self-explanatory
Paragraph(2) Self-explanatory
Article30
Paragraph(1) Self-explanatory
Paragraph(2) Self-explanatory
Paragraph(3) Self-explanatory
42 ELUCIDATION ON THE LAW OF THE REPUBLIC OF THE REPUBLIC OF INDONESIA NUMBER 5 YEAR 1999
Article31
Paragraph(1)The Chairperson and the Vice Chairperson of the Commission shall be elected from among and by Members of the Commission.
Paragraph(2) Self-explanatory
Paragraph(3) Self-explanatory
Paragraph(4)Extension of the term of membership in the Commission for the purpose ofavoidingavacancymaynotexceed1(one)year.
Article32
Sub-Articlea Self-explanatory
Sub-Articleb Self-explanatory
Sub-Articlec Self-explanatory
Sub-Articled Self-explanatory
Sub-Articlee Self-explanatory
Sub-Articlef Self-explanatory
Sub-ArticlegNot having been convicted of a crime shall mean a person’s not having beenimposedwithacriminalsanctionduetoaseriouscriminalactorduetotheviolationofmorality.
Sub-Articleh Self-explanatory
ELUCIDATION ON THE LAW OF THE REPUBLIC OF THE REPUBLIC OF INDONESIA NUMBER 5 YEAR 1999 43
Sub-ArticleiNotaffiliatedwithaparticularbusinessentityshallmeanthatasfromthetimeatwhich theperson concernedbecomes amemberof theCommission, such person does not act as:
1. a member of the board of commissioners or supervisors, or of the boardofdirectorsofacompany;
2. amemberofthemanagementorinspectionbodyofacooperative;
3. a party providing services to a company, such as consultant, public accountantandappraiser;
4. amajorityshareholderinacompany.
Article33
Sub-Articlea Self-explanatory
Sub-Articleb Self-explanatory
Sub-Articlec Self-explanatory
Sub-ArticledStated in the form of a statement by an authorised physician.
Sub-Articlee Self-explanatory
Sub-ArticlefDismissedduetothereasonof,amongotherthings,nolongermeetingtherequirementsforCommissionmembershipasintendedinArticle32.
Article34
Paragraph(1) Self-explanatory
Paragraph(2)Secretariat shallbe theorganizationalunit supportingorassisting theCommissionintheimplementationofitsduties.
44 ELUCIDATION ON THE LAW OF THE REPUBLIC OF THE REPUBLIC OF INDONESIA NUMBER 5 YEAR 1999
Paragraph(3)WorkingunitshallbeaprofessionalteamappointedbytheCommissiontoassistintheimplementationofcertaintasksatacertaintime.
Paragraph(4) Self-explanatory
Article35
Sub-Articlea Self-explanatory
Sub-Articleb Self-explanatory
Sub-Articlec Self-explanatory
Sub-Articled Self-explanatory
Sub-Articlee Self-explanatory
Sub-Articlef Self-explanatory
Sub-Articleg Self-explanatory
Article36
Sub-Articlea Self-explanatory
Sub-Articleb Self-explanatory
Sub-Articlec Self-explanatory
Sub-Articled Self-explanatory
Sub-Articlee Self-explanatory
ELUCIDATION ON THE LAW OF THE REPUBLIC OF THE REPUBLIC OF INDONESIA NUMBER 5 YEAR 1999 45
Sub-Articlef Self-explanatory
Sub-ArticlegInvestigatorshallbeaninvestigatorasintendedinLawNumber8Year1981.
Sub-Articleh Self-explanatory
Sub-Articlei Self-explanatory
Sub-Articlej Self-explanatory
Sub-Articlek Self-explanatory
Sub-Articlel Self-explanatory
Article37Inprinciple, theState is responsible for theoperational implementationoftheCommission’sdutiesbyprovidingsupportintheformoffundingthroughthe State Revenues and Expenditures Budget. However, bearing in mind the broadanddiversescopeandfieldoftheCommission’sduties,theCommissionmay obtain funds from other sources not contradictory to the prevailing laws and regulations,whicharenotbinding innatureandwillnot influence theCommission’s independence.
Article38
Paragraph(1) Self-explanatory
Paragraph(2) Self-explanatory
Paragraph(3) Self-explanatory
Paragraph(4) Self-explanatory
46 ELUCIDATION ON THE LAW OF THE REPUBLIC OF THE REPUBLIC OF INDONESIA NUMBER 5 YEAR 1999
Article39
Paragraph(1) Self-explanatory
Paragraph(2) Self-explanatory
Paragraph(3) Self-explanatory
Paragraph(4) Self-explanatory
Paragraph(5) Self-explanatory
Article40
Paragraph(1) Self-explanatory
Paragraph(2) Self-explanatory
Article41
Paragraph(1) Self-explanatory
Paragraph(2) Self-explanatory
Paragraph(3)TheCommission shall submit to the investigators for investigationnotonlycriminalactsoractionsasintendedinparagraph(2)ofthisarticle,butalsotheprincipalcasesunderinvestigationandexaminationbytheCommission.
Article42
Sub-Articlea Self-explanatory
ELUCIDATION ON THE LAW OF THE REPUBLIC OF THE REPUBLIC OF INDONESIA NUMBER 5 YEAR 1999 47
Sub-Articleb Self-explanatory
Sub-Articlec Self-explanatory
Sub-Articled Self-explanatory
Sub-Articlee Self-explanatory
Article43
Paragraph(1) Self-explanatory
Paragraph(2) Self-explanatory
Paragraph(3)TheCommission’sdecisionmakingasintendedinparagraph(3)ofthisArticleshallbeconducted inaCouncilmeetingconsistingofat least3(three)Commissionmembers.
Paragraph(4)ReferredtoasnotifiedshallbeconveyinganexcerptfromtheCommission’sdecision to the business actor concerned.
Article44
Paragraph(1)30(thirty)daysshallbecountedasfromthereceiptoftheexcerptfromtheCommission’s decision by the business actor concerned or its legal proxy.
Paragraph(2) Self-explanatory
Paragraph(3) Self-explanatory
Paragraph(4) Self-explanatory
48 ELUCIDATION ON THE LAW OF THE REPUBLIC OF THE REPUBLIC OF INDONESIA NUMBER 5 YEAR 1999
Paragraph(5) Self-explanatory
Article45
Paragraph(1) Self-explanatory
Paragraph(2) Self-explanatory
Paragraph(3) Self-explanatory
Paragraph(4) Self-explanatory
Article46
Paragraph(1) Self-explanatory
Paragraph(2) Self-explanatory
Article47
Paragraph(1) Self-explanatory
Paragraph(2)
Sub-Paragraph a Self-explanatory
Sub-Paragraph bCeasing vertical integration shall be implemented, amongotherthings, by annulment of the agreement, transfer of a part of the company to another business actor, or change of the form of productionseries.
Sub-Paragraph cTheordershallbetoceasecertainactivitiesorconduct,ratherthantheentirebusinessactivitiesofthebusinessactorconcerned.
ELUCIDATION ON THE LAW OF THE REPUBLIC OF THE REPUBLIC OF INDONESIA NUMBER 5 YEAR 1999 49
Sub-Paragraph d Self-explanatory
Sub-Paragraph e Self-explanatory
Sub-Paragraph fCompensation for losses shall be granted to thebusiness actorconcernedandtootherpartieshavingsufferedaloss.
Sub-Paragraph g Self-explanatory
Article48
Paragraph(1) Self-explanatory
Paragraph(2) Self-explanatory
Paragraph(3) Self-explanatory
Article49
Sub-Articlea Self-explanatory
Sub-Articleb Self-explanatory
Sub-Articlec Self-explanatory
Article50
Sub-Articlea Self-explanatory
Sub-Articleb Self-explanatory
Sub-Articlec Self-explanatory
50 ELUCIDATION ON THE LAW OF THE REPUBLIC OF THE REPUBLIC OF INDONESIA NUMBER 5 YEAR 1999
Sub-Articled Self-explanatory
Sub-Articlee Self-explanatory
Sub-Articlef Self-explanatory
Sub-Articleg Self-explanatory
Sub-ArticlehReferred to as business actors of the small-scale group shall be as intended inLawNumber9Year1995concerningSmall-ScaleBusiness.
Sub-ArticleiReferred to as serving their members shall be providing services exclusively to their members and not to the public for the procurement of basic needs, productionfacilitiesrequirementsincludingcreditandrawmaterials,aswellasservicesforthemarketinganddistributingproductsofmemberswhichdonotresultinmonopolisticpracticesandorunfairbusinesscompetition.
Article51 Self-explanatory
Article52
Paragraph(1) Self-explanatory
Paragraph(2) Self-explanatory
Article53 Self-explanatory
SUPPLEMENT TOTHE STATE GAZETTE OF THE REPUBLIC OF INDONESIA
NUMBER3817