The Competition Supervisory Commission (CSC) has revolutionized the reporting of merger and acquisition transactions in Indonesia by facilitating an online reporting system. The system allows companies to report their M&A transactions in a more efficient and transparent manner while also providing the CSC with a platform to monitor transactions and prevent any anti-competitive practices. In this article, we will explore the benefits of the online reporting system and how it has improved the M&A landscape in Indonesia.
The Business Competition Supervisory Commission (KPPU) has recently released KPPU Regulation No. 3/2023, which explains the process for assessing mergers, consolidations, and acquisitions of shares or assets that may result in monopolistic practices or unfair business competition. In an effort to optimize the notification process for these transactions, KPPU has implemented an electronic notification system.
Under Government Regulation (PP) No. 57/2010 and KPPU Regulation No. 3/2019, any merger or acquisition transaction that meets the asset or sales provisions must be reported within 30 days. Failure to comply with this requirement will result in a fine of Rp 1 billion per day. As a result, it was deemed necessary for KPPU to introduce an electronic platform to enhance the efficiency and effectiveness of the notification process.
KPPU Director of Mergers and Acquisitions Aru Armando stated that “KPPU considers it necessary to implement an electronic platform to improve the efficiency and effectiveness of this notification process.” This new electronic platform will assist businesses in ensuring a smooth notification process, thus promoting fair competition practices.
KPPU has provided Regulation No. 3/2023 for download at the end of their article, indicating its importance and significance in the current business environment. The regulation has been introduced to promote fair market competition practices, which is essential for the growth and stability of the Indonesian economy.
In conclusion, the introduction of KPPU Regulation No. 3/2023 and the electronic platform for notifying mergers, consolidations, and acquisitions of shares or assets represent a continuation of the KPPU’s commitment to promoting fair competition practices. By providing an efficient notification process for businesses, KPPU seeks to cultivate a business environment that welcomes and promotes healthy competition. The new regulation ensures that businesses are fully informed and compliant with laws and regulations, and that monopolistic practices or unfair competition are eliminated.
