New Merger Filing Regulation

Indonesia's competition authority, the KPPU (Komisi Pengawas Persaingan Usaha), has issued a new merger filing regulation, KPPU Regulation No. 3 of 2023 regarding Evaluation of Merger, Consolidation, or Acquisition of Shares and/or Assets which May Result in Monopolistic Practices and/or Unfair Competition ("KPPU Reg 3/2023").

Because this regulation is so new, certain provisions may require further clarification. Nonetheless, based on the text of the regulation, the following appear to be the biggest changes under KPPU Reg 3/2023:

Localization of Asset Threshold

The calculation of the relevant parties' asset value against the applicable IDR 2.5 trillion threshold under Article 7 of KPPU Reg 3/2023 is now limited to assets located within the territory of Indonesia, as opposed to worldwide assets. The previously adopted "worldwide asset value as asset threshold" understanding no longer holds true. This approach of limiting assets to assets within Indonesia now