The Commission for the Supervision of Business Competition (Komisi Pengawas Persaingan Usaha – “KPPU”) has established a new framework that governs procedures for the supervision and handling of cases related to alleged violations that occur during the implementation of partnerships through the issuance of Regulation of the KPPU No. 2 of 2024 on Procedures for the Supervision and Handling of Partnership Cases (“Regulation 2/2024”), which has been in force since 5 April 2024.[1] Consequent to the enforcement of Regulation 2/2024, the previous framework to address the supervision and handling of partnership cases, specifically Regulation of the KPPU No. 4 of 2019, which bore a similar title to Regulation 2/2024 (“Regulation 4/2019”), has now been simultaneously repealed and replaced.[2]

As background,  Regulation 2/2024 sets out the scope of KPPU supervision of partnerships, specifically: 1) Micro-scale enterprises and medium-scale enterprises; 2) Micro-scale enterprises and large-scale enterprises; 3) Small-scale enterprises and medium-scale enterprises; 4) Small-scale enterprises and large-scale enterprises; and 5) Medium-scale enterprises and large-scale enterprises. Partnerships can be implemented through 10 types of models that include: franchises, distributors, agencies, joint ventures, outsourcing and so forth (for more information, see “KPPU Strengthens Handling of Partnership Cases”).[3] Due to the wide scope of Regulation 2/2024, this edition of Indonesian Legal Brief will highlight various new provisions introduced therein and will focus its discussion on the following related topics:

1. Legal Representation and the Merged Handling of Alleged Violations;
2. Types of Cases: Revised Required Contents of Reports; and
3. Highlighting Updated Provisions on Handling Procedures.

Legal Representation and the Merged Handling of Alleged Violations

Regulation 2/2024 has now expanded provisions that address legal representatives, including the following arrangements:[4]

1. Witnesses, informants (pelapor) and/or respondents (terlapor) may be assisted or represented by legal representatives, who must secure special power of attorney from said parties during each stage of the supervision and handling of partnership cases. Legal representatives may also provide advice to the above-mentioned parties regarding requests for statements (permintaan keterangan);
2. If legal representatives are advocates, then they must provide and submit original power of attorney (surat kuasa asli) along with their identities.
3. The handling of cases may be merged (through requests that are submitted by relevant officials responsible for the supervision of partnerships and that require approvals to be granted at KPPU meetings) under the following conditions:

• • More than one report addresses the same specific matters; and/or
  • There are links between different alleged violations.

Regulation 4/2019 stated that only respondents had the right to be assisted by legal representatives.[5]

Types of Cases: Revised Required Contents of Reports

Similar to Regulation 4/2019, cases can be opened through the filing of reports, as well as on the initiative of the KPPU. A definition of reports has also now been introduced under Regulation 2/2024 and breaks down as follows: “Information through complete and clear explanations regarding allegations of ownership and/or control by large-scale or medium-scale enterprises is submitted to the KPPU by informants.”[6]

Furthermore, Regulation 2/2024 specifies that informants may  file reports on alleged violations (“Reports”) with the Chief of the KPPU directly (i.e. through KPPU headquarters or regional branches) or through electronic media. Moreover, it should be noted that once Reports have been submitted, they cannot be revoked by informants.[7]

The minimum contents of Reports have also been updated from those previously set under Regulation 4/2019, as summarized in the following table:

Highlighting Updated Provisions on Handling Procedures

Regulation 2/2024 has also revised the overall handling process,  which now breaks down into the following stages: 1) Investigation; 2) Preliminary examination; 3) Written warnings; 4) Advanced examination; and 5) KPPU decision.[10] The following table  summarizes these related activities and the timeframes that apply to each stage, as provided under the frameworks of both Regulation 2/2024 and Regulation 4/2019:

Source: hukumonline.com