When the ASEAN Economic Community (AEC) finally commences in early 2016, the increases movement of goods/services within Southeast Asia region is a foregone conclusion. As a consequence, a transaction made outside Indonesia’s jurisdiction may cause a negative impact on its domestic market.
To overcome this issue, Indonesia’s antitrust commission, the Commission for the Supervision of Business Competition (KPPU), has highlighted the urgency of expanding the KPPU’s authority, especially to deal with foreign transactions. M Nawir Messi, KPPU’s Chairman, said that this is necessary to deal with negative impacts due to transactional matters outside the nation.
One way to realize this expansion of authority, as Mr. Messi explained, is by amending the Antitrust Law, particularly in regard to procedural matters, human resources, and administration. This may possibly be realized soon, as the amendment to the Antitrust Law has been included in the 2015 National Legislation Program.
“We hope that it will be finished by the end of the year,” said Mr. Messi recently.
The importance of strengthening the KPPU’s role in terms of procedural law, lies in the use of circumstantial evidence. The KPPU is known to use theis type of evidence to prove unfair business competition. However, there are some judges that reject circumstantial evidence at trial. Therefore, it is necessary to provide for its use under the amendment.
Showing some support, Vice President Jusuf Kalla agreed with the amendment idea. He explained that the KPPU may face difficulties after the AEC is commenced, especially in overseeing cross-border transactions. Without the proper amendment, the Vice President is concerned that the KPPU will not be able to maintain fair competition between businesses.
“This job is not easy given our nation is so big, our businesses are big, and our capital is very concentrated,” concluded the Vice President.
When the ASEAN Economic Community (AEC) finally commences in early 2016, the increases movement of goods/services within Southeast Asia region is a foregone conclusion. As a consequence, a transaction made outside Indonesia’s jurisdiction may cause a negative impact on its domestic market.
To overcome this issue, Indonesia’s antitrust commission, the Commission for the Supervision of Business Competition (KPPU), has highlighted the urgency of expanding the KPPU’s authority, especially to deal with foreign transactions. M Nawir Messi, KPPU’s Chairman, said that this is necessary to deal with negative impacts due to transactional matters outside the nation.
One way to realize this expansion of authority, as Mr. Messi explained, is by amending the Antitrust Law, particularly in regard to procedural matters, human resources, and administration. This may possibly be realized soon, as the amendment to the Antitrust Law has been included in the 2015 National Legislation Program.
“We hope that it will be finished by the end of the year,” said Mr. Messi recently.
The importance of strengthening the KPPU’s role in terms of procedural law, lies in the use of circumstantial evidence. The KPPU is known to use theis type of evidence to prove unfair business competition. However, there are some judges that reject circumstantial evidence at trial. Therefore, it is necessary to provide for its use under the amendment.
Showing some support, Vice President Jusuf Kalla agreed with the amendment idea. He explained that the KPPU may face difficulties after the AEC is commenced, especially in overseeing cross-border transactions. Without the proper amendment, the Vice President is concerned that the KPPU will not be able to maintain fair competition between businesses.
“This job is not easy given our nation is so big, our businesses are big, and our capital is very concentrated,” concluded the Vice President.