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KADIN INDONESIA

Indonesian Chamber of Commerce and Industry

KADIN INDONESIA

Indonesian Chamber of Commerce and Industry

Kadin Indonesia and KPPU Sign MoU to Support Growth and Healthy Business Competition for Indonesia's Digital Industry

The Indonesian Chamber of Commerce and Industry (Kadin) and the Business Competition Supervisory Commission (KPPU) signed a memorandum of understanding (MoU) to support the creation of a healthy and fair business ecosystem. This signing was specifically carried out to anticipate the emergence of unfair business competition as a result of the rapid development of the digital economy.

This MoU was made with reference to Law Number 5 Year 1999 on the Prohibition of Monopolistic Practices and Unfair Business Competition and its amendments and the supervision of the implementation of fair and operational partnerships in line with Law Number 20 Year 2008 on Micro, Small and Medium Enterprises and its amendments.

Acting Chairman of Kadin Indonesia, Yukki Nugrahawan Hanafi, said the MoU was made based on Law No. 5/1999 on the Prohibition of Monopolistic Practices and Unfair Business Competition and Law No. 20/2008 on Micro, Small, and Medium Enterprises (MSMEs) to supervise the implementation of fair partnerships and the protection of MSMEs.

"As a strategic partner of the government, Kadin Indonesia is committed to encouraging the creation of healthy business competition to support Indonesia's economic progress. Through this MoU, Kadin Indonesia and KPPU will provide support in the development of market competition that continues to change for the better," said Yukki.

Yukki added that the MoU is also expected to provide collaboration space for Kadin Indonesia and KPPU, in order to provide advice and input, policy advocacy, socialisation, and training and education related to how the market ecosystem and competition in the business world for industry players and MSMEs throughout Indonesia.

Chairman of the Business Competition Supervisory Commission, Afif Hasbullah, appreciated Kadin Indonesia's commitment in supporting the creation of a fair, inclusive, and healthy market for businesses so that competition can contribute positively to Indonesia's economic growth.

"Law Number 5 Year 1999 is a regulation created to prevent the concentration of economic access by one or more business actors, which results in the control of production and marketing of certain goods and or services. This can certainly lead to unfair business competition that can harm the public interest," he said.

As is well known, Indonesia is currently undergoing a transformation in the industrial world, especially those related to digital technology. The presence of online platforms has changed the way industries compete to sell their products. Based on online platform trade projections, Indonesia is predicted to reach a Gross Merchandise Value (GMV) of USD 22 billion by 2028. Through this MoU, Kadin Indonesia and KPPU want to anticipate business competition in the digital realm in the future as well as to achieve the Business Competition Index (IPU) target in 2045.

Indonesia's IPU is relatively healthy and continues to progress, currently the scale is 4.87 from the best scale of 7. KPPU targets to reach scale 5 in 2024 and scale 6 in 2045. Therefore, this MoU is a form of effort to achieve this vision and through the digital industry, it is hoped that this target can be achieved soon.

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KADIN INDONESIA

Indonesian Chamber of Commerce and Industry