End of Relaxation Period for Competition Regulations Enforcement

As the Covid-19 Pandemic has begun to ease up, the Indonesian Competition Supervisory Commission (Komisi Pengawasan Persaingan Usaha or “KPPU”) determined to end the Relaxation Period for Monopolistic Practices and Unfair Business Competition and Supervision of Partnerships to Support National Economic Recovery (“Relaxation Period”) through KPPU Regulation No. 2 of 2022 on the Revocation of the Relaxation Period dated April 1, 2022 (“Reg. 2/2022”).

The Relaxation Period was first introduced through KPPU Regulation No. 3 of 2020 dated November 9, 2020 (“Reg. 3/2020”) as a means to support collaboration in businesses to curb the economic effects of the Covid-19 Pandemic.

Under Reg. 3/2020, businesses may enjoy the following benefits:

  1. Utilization of state budget for the procurement of medical supplies or services and to distribute social aid and safety nets from the Government to the public;
  2. Use of dominant positions in order to manage Covid-19 or to improve the economic ability of the business (subject to KPPU approval); and
  3. Extension of period for the submission of a Merger, Consolidation or Acquisition by 30 (thirty) days (making the notification period a total of 60 (sixty) days); and
  4. Extension for the period of written warnings for Partnership supervision into 30 (thirty) days.

With the issuance of Reg. 2/2022, the Relaxation Period has ended, and Reg. 3/2022 revoked.

Reg. 2/2022 will be enacted 30 (thirty) days after its enactment. Thus, businesses must ensure that their Merger, Consolidation and Acquisition notification complies to the initial 30 (thirty) day period that was effective before the Relaxation Period.

 

April 20, 2022

Please contact Alfa D. Setiawati (asetiawati@aksetlaw.com) or Caleb K. N. Sitorus (csitorus@aksetlaw.com) for further information.

 

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