TEMPO.CO, Jakarta - The government will revise Law No. 5/1999 on Business Competition. Syarkawi Rauf, chairman of the Business Competition Supervisory Commission (KPPU), said the revision will be included in the 2016 National Legislation Programs' (Prolegnas).
One of the points to be revised is the increase of fines for violating business competition rules. The fines for cartel and monopoly practices will be increased from Rp25 billion to Rp1 trillion.
Syarkawi said that a higher fine will help the prevention of and combat against cartel and monopoly practices.
Other revisions proposed are authority reinforcement for the KPPU by allowing the Commission to conduct searches during investigation in order to obtain necessary documents.
In the field of business merger, the KPPU is also requesting to have the authority to deny acquisition proposals by foreign companies that could have negative impacts for the domestic economy.
Trade Minister Thomas Trikasih Lembong agrees with KPPU's plan to reinforce its institution by revising Law No.5/1999. "KPPU needs to have a role as an independent and objective institution to monitor and take actions against unhealthy business competition practices," the minister said.
Thomas also said that the revision plan has been approved by President Joko Widodo. The government hopes that the KPPU can become a state instrument that can be used to combat bad business conducts.
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