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ARTICLE · 17 APRIL 2014

Competition regulation in Indonesia: Transact globally, comply locally

Corrs Chambers Westgarth
Corrs Chambers Westgarth
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Corrs Chambers Westgarth

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Australian businesses must consider how international M&A activity might trigger competition consequences in Indonesia.

AustraliaAntitrust/Competition Law

Indonesia has an evolving regulatory framework for competition regulation. Australian businesses must consider how their international M&A activity might trigger competition consequences in Indonesia.

COMPETITION LAW

Indonesia's Anti-Monopoly and Unfair Competition Law requires that M&A activity that meets certain thresholds must be notified to the Business Competition Supervisory Commission (KPPU).

The triggers for notification are any share acquisition, merger or consolidation that results in:

  • a company with assets exceeding 2.5 trillion rupiah (approximately A$240 million);
  • a bank with assets exceeding 20 trillion rupiah (approximately A$1.92 billion); or
  • a company with sales exceeding 5 trillion rupiah (approximately A$480 million),

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