Business Competition Law Enforcement by the Business Competition Supervisory Commission in Territorial Division Agreements
DOI:
https://doi.org/10.59525/rechtsvinding.1957Keywords:
Business competition supervision; Law enforcement; Territorial division agreement; KPPU; Rule of reasonAbstract
he Business Competition Supervisory Commission (KPPU) serves as the primary institution responsible for enforcing competition law in Indonesia, established under Law Number 5 of 1999 concerning the Prohibition of Monopolistic Practices and Unfair Business Competition. This study aims to analyze the role of KPPU in exercising its law enforcement function, particularly in handling territorial division agreements among business actors. The research employs a normative juridical approach with analytical descriptive specifications, examining positive legal provisions governing business competition and KPPU's authority under Law Number 5 of 1999, KPPU Regulation Number 1 of 2014, and KPPU Regulation Number 2 of 2023. The findings reveal that KPPU possesses comprehensive authority encompassing investigative, examining, prosecutorial, adjudicative, and consultative functions. In enforcing Article 9 concerning territorial division agreements, KPPU applies the rule of reason approach, requiring concrete evidence and in-depth evaluation of the agreement's impact on competition. Sanctions for violations include administrative measures under Article 47 and criminal penalties under Article 48, with fines ranging from IDR 25 billion to IDR 100 billion or imprisonment substitution for up to six months. KPPU has also introduced an integrity pact mechanism for behavioral change under KPPU Regulation Number 2 of 2023, allowing business actors to voluntarily commit to canceling prohibited agreements and ceasing violative activities. Despite KPPU's extensive enforcement authority, execution of final and binding decisions remains under judicial purview as stipulated in Article 46 paragraph (2), requiring coordination between KPPU and district courts. The study concludes that strengthening institutional capacity, enhancing regulatory clarity in rule of reason application, expanding preventive supervision, and improving coordination with the judiciary are essential for optimizing KPPU's law enforcement function in maintaining fair business competition and protecting consumer welfare in Indonesia.
References
Adhie, A. J., Suwandono, A., & Yuanitasari, D. (2023). Venture Capital Law Renewal: A Solution for Business Convenience and Legal Certainty in Indonesia. Jambura Law Review. https://doi.org/10.33756/jlr.v5i2.17779
Azizah, R., Gilalo, J. J., & Anisa, R. Y. (2023). Fungsi dan Peran Lembaga KPPU dalam Praktek Persaingan Usaha. Karimah Tauhid, 2(3), 697-707.
Bayuaji, R. (2023). The Urgency of Establishing a Business Competition Court in Indonesia. KnE Social Sciences. https://doi.org/10.18502/kss.v8i4.12956
Da Silva, E. B., Darmawan, D., & Irfan, M. (2022). Understanding Social Contracts: Formal Agreements in Business Practice. Studi Ilmu Sosial Indonesia, 2(1), 127-144.
Darmawan, D., & Grenier, E. (2021). Competitive advantage and service marketing mix. Journal of Social Science Studies, 1(2), 75-80.
Effendi, B. (2020). Pengawasan dan Penegakan Hukum terhadap Bisnis Digital (E-Commerce) oleh Komisi Pengawas Persaingan Usaha (KPPU) dalam Praktek Persaingan Usaha Tidak Sehat. Syiah Kuala Law Journal, 4(1), 21-32.
Fadhilah, M. (2019). Penegakan Hukum Persaingan Usaha Tidak Sehat oleh Komisi Pengawas Persaingan Usaha (KPPU) Dalam Kerangka Ekstrateritorial. Jurnal Wawasan Yuridika, 3(1), 55-72.
Fibrianti, N., & Wahanisa, R. (2023). Comparison of business competition institutions between indonesia and thailand as a form of strengthening the indonesian business competition supervisory. IBLAM Law Review, 3(3), 72–82. https://doi.org/10.52249/ilr.v3i3.153
Hanni, N. (2019). Exclusive Distribution and Non-Compete Clause in Trade: Transnational Agreements in European Union and United States. 3(2), 141. https://doi.org/10.24843/UJLC.2019.V03.I02.P02
Harahap, S. H. (2025). Exclusive Supply Arrangement Practice Between Retailer and Supplier and its Impact to The Business Competition. Journal of Social Research, 4(7), 1985–1997. https://doi.org/10.55324/josr.v4i7.2697
Hardyansah, R., R. Saputra, D. Darmawan, & D. S. Negara. (2022). Public Legal Consciousness Regarding Online Credit Agreements from Civil Law and Consumer Protection Perspectives, Studi Ilmu Sosial Indonesia, 2(1), 261-282.
Hassan, Z. K., & Kameel, T. A. R. (2024). The Basis of Legality of Restricting Competition Agreements A Comparative Analytical Study. مجلة جامعة العين للأعمال والقانون. https://doi.org/10.51958/aaujbl2024v8i1p3
Humairah, N., Siregar, T., & Isnaini, I. (2025). Supervision Strategy of the Business Competition Supervisory Commission on Anti-Competition Practices. Journal of Public Representative and Society Provision, 5(2), 288–295. https://doi.org/10.55885/jprsp.v5i2.529
Indarto, T., Negara, D. S., & Darmawan, D. (2023). Legal Frameworks for Mitigating Monopoly Practices Adverse to MSMEs in Indonesia. Journal of Social Science Studies, 3(1), 1-8.
Indonesia. (1999). Undang-Undang Nomor 5 Tahun 1999 tentang Larangan Praktek Monopoli dan Persaingan Usaha Tidak Sehat. Pemerintah Republik Indonesia. Jakarta.
Indonesia. (1999). Undang-Undang Nomor 5 Tahun 1999 tentang Larangan Praktek Monopoli dan Persaingan Usaha Tidak Sehat. Lembaran Negara Republik Indonesia Tahun 1999 No. 33; Tambahan Lembaran Negara No. 3817. Pemerintah Republik Indonesia. Jakarta.
Indonesia. (2023). Peraturan Komisi Pengawas Persaingan Usaha Nomor 2 Tahun 2023 tentang Tata Cara Penanganan Perkara Praktik Monopoli dan Persaingan Usaha Tidak Sehat. Komisi Pengawas Persaingan Usaha. Jakarta.
Jauhari, M. A., Negara, D. S., & Darmawan, D. (2024). Responsibilities of Digital Marketplace Platforms and Anticompetitive Assessments in Business Law. Journal of Social Science Studies, 4(1), 407-422.
Jawani, L. (2021). Prinsip Rule of Reason terhadap Praktik Dugaan Kartel menurut Pasal 11 Undang-Undang Nomor 5 Tahun 1999 tentang Larangan Praktek Monopoli dan Persaingan Usaha Tidak Sehat. Jurnal Humaya: Jurnal Hukum, Humaniora, Masyarakat, Dan Budaya, 1(2), 99-106.
Kararach, G. (2025). Markets, the state and the efficacy of competition policy. 239–257. https://doi.org/10.4337/9781035316182.00030
Katsoulacos, Y., Motchenkova, E., & Ulph, D. (2020). Penalising on the Basis of the Severity of the Offence: A Sophisticated Revenue-Based Cartel Penalty. Review of Industrial Organization, 57(3), 627–646. https://doi.org/10.1007/S11151-019-09738-X
Latif, I. S., Pangestu, I. A., & Fadhlillah, M. R. (2023). Critical Study of Business Competition Supervisory Commission’s Authority in Handling Business Competition Violations. Justisi: Jurnal Ilmu Sosial. https://doi.org/10.33506/jurnaljustisi.v9i3.2436
Lukyanenko, M. I. (2024). Administrative responsibility for offenses in the sphere of competition protection: current issues and trends. Èkonomika i Upravlenie: Problemy, Rešeniâ, 10/14(151), 23–29. https://doi.org/10.36871/ek.up.p.r.2024.10.14.004
Manan, A., Nafri, Moh., & Permana, M. D. (2025). Law Enforcement Against Digital Businesses (E-Commerce) by The Business Competition Supervisory Commission (KPPU) in Competition Practices Unhealthy Business. Sinergi International Journal of Law, 3(2), 124–130. https://doi.org/10.61194/law.v3i2.760
Mardikaningsih, R., & Darmawan, D. (2016). Strategi Pengembangan Kompetensi Inti untuk Keunggulan Bersaing. Jurnal Ekonomi Dan Bisnis, 6(1), 35-48.
Mardikaningsih, R., & Essa, N. E. (2025). Cross-functional HRM and Marketing Collaboration in Driving Consumer Needs-based Eco-Friendly Product Innovation. Bulletin of Science, Technology and Society, 4(2), 69–78.
Pakpahan, E. F., Tanjaya, W., Azharuddin, A., & Affendy, A. B. (2024). Juridical Review of Delayed Share Acquisition Notification Damaging PT. Sinar Mitra Compensated by PT. Orix. Jurnal Akta, 11(3), 970–970. https://doi.org/10.30659/akta.v11i3.39278
Pijoh, F. engeline, Melo, I. J., Hs., F., & Adama, N. A. (2023). Legal Study of Anti-Monopoly Activities and Fair Business Competition in the Business World. Technium Social Sciences Journal. https://doi.org/10.47577/tssj.v49i1.9780
Polontoh, H., & Saputri, F. A. (2025). Regulation and Sanctions Against Unfair Business Competition: Challenges in Law Enforcement. 2(3), 28–43. https://doi.org/10.61942/jhk.v2i3.322
Putra, A. R., & Darmawan, D. (2022). Competitive Advantage of MSMEs in Terms of Technology Orientation and Entrepreneurship Competence. International Journal of Service Science, Management, Engineering, and Technology, 2(1), 15-20.
Rahayu, A., Halizah, S. N., & Mardikaningsih, R. (2024). Law on the Resolution of Minority Shareholder Conflicts in Public Companies Based on the National Regulatory System. Journal of Social Science Studies, 4(1), 237-248.
Sanusi, S. L. (2022). Filing a Lawsuit for Damages in Enforcing the Civil Aspects of Business Competition. Journal of Dinamika Hukum, 22(3), 665–665. https://doi.org/10.20884/1.jdh.2022.22.3.3428
Setyastomo, D., Mardikaningsih, R., & Sulani, S. (2024). Legal Implications of Beneficial Ownership Disclosure in Closed Companies on Strengthening the Anti-Money Laundering System in Indonesia. Journal of Social Science Studies, 4(1), 67-74.
Shahab, A. M., Pakpahan, N. H., & Wibowo, A. S. (2024). Monopoly Supervision and Competition Law Enforcement in the Natural Resources Sector. Journal of Social Science Studies, 4(1), 145-154.
Shahrullah, R. S., & Cokro, H. H. (2020). Penegakan Hukum bagi Pedagang Usaha Mikro, Kecil dan Menengah terhadap Para Pelaku Usaha Monopoli. Journal of Law and Policy Transformation, 5(2), 113-127.
Sibuea, H. M., Silalahi, U., & Budi, H. S. (2024). Criminalization of Individuals as a Deterrent Effect Upon Cartel Behaviour in Indonesia. Journal of Judicial Review, 26(1), 69–88. https://doi.org/10.37253/jjr.v26i1.9132
Simbolon, A. (2019). Prevention of Monopolistic Practices and Unfair Business Competition through Business Competition Supervision. Journal of Legal, Ethical and Regulatory Issues, 22(1).
Sinambela, E. A. (2024). Penguatan Identitas Brand Dalam Persaingan Bisnis Serta Strategi Membangun Diferensiasi Yang Berkelanjutan. Jurnal Ekonomi dan Bisnis, 14(2), 51-70.
Sinambela, E. A., & Aprilianti, E. T. (2011). Strategi mengatasi erosi loyalitas pelanggan di tengah intensitas persaingan pasar. Jurnal Ekonomi dan Bisnis, 1(2), 76-89.
Suhandoko, R., R. Hardyansah, & R. K. Khayru. (2023). Social Sanctions as Pressure Instruments in Compliance with Non Court Inheritance Division Agreements, Studi Ilmu Sosial Indonesia, 3(2), 197-222.
Supriyono, S. (2024). Research methodology: qualitative approach. https://doi.org/10.13140/rg.2.2.26723.57121
Vidican, R. D. (2023). Legal protection against anticompetitive practices. Agora International Journal of Juridical Sciences. https://doi.org/10.15837/aijjs.v17i1.5748
Wibowo, A. S., Darmawan, D., Halizah, S. N., & Mardikaningsih, R. (2023). Optimizing the Principles of Healthy Business Competition and the Role of KPPU for a Fair Economy in the Digital Era. Journal of Social Science Studies, 3(1), 95-100.
Widhiyanti, H. N. (2024). Enforcement of The Principle and Objective of Law Number 5 of Year 1999 on The Prohibition of Monopolistic and Unhealthy Business Competition Practices in Handling Business Competition Cases. Parental: Jurnal Hukum Dan Budidaya, 12(1), 68–68. https://doi.org/10.20961/jolsic.v12i1.81743
Wiganarto, T. U., Gultom, E., & Permana, S. (2022). Use Of Indirect Evidence In Disclosure Of Cartel Violations According To Business Competition Law In Indonesia. Protection, 1(1), 37–43. https://doi.org/10.38142/pjlel.v1i1.340
Zulfadli, M., Ridha, R., Balkis, S., & Said, Muh. (2023). The position and authority of the business competition supervisory commission (KPPU) in supervising business competition in Indonesia. Technium Social Sciences Journal, 50, 486–497. https://doi.org/10.47577/tssj.v50i1.9930
Zulkarnain, A., Darmawan, D., & Hardyansah, R. (2024). Effectiveness of Law No. 5 of 1999 in Handling Cross-Border Business Competition. SAPIENTIA ET VIRTUS, 9(2), 461-475.
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2025 Rommy Hardyansah, Didit Darmawan, Fayola Issalillah, Rafadi Khan Khayru Khayru, Rahayu Mardikaningsih
This work is licensed under a Creative Commons Attribution 4.0 International License.
