In 23 February 2011, Business Competition Supervisory Commission (the “KPPU“) has issued KPPU Regulation No. 2 of 2011 on the Procedures for Imposing Fines for Overdue Company Merger/ Consolidation and/or Acquisition Notifications (the “Regulation“). This Regulation has been issued as implementation of Law No. 5 of 1999 on the Prohibition of Monopolistic and Unfair Business Practices (Law No.5/1999) and Article 6 of Government Regulation No. 57 of 2010 on Mergers or Consolidations of Businesses and Acquisitions of Shares of Businesses That Can Result in Monopolistic and Unfair Business Practices (the “PP 57/2010“).
Pursuant to Article 2 paragraph 1, the KPPU has entitled to monitors information regarding transactions of merger, consolidation, or acquisition requirements, however have not notified to the KPPU. Under Article 2 paragraph 3, monitoring by KPPU may include the reporting from public or news of media, an official letter from a related institution, or other relevant resources. The monitoring will be implemented periodically and for an undetermined amount of time.
Article 3 paragraph 1 to paragraph 4 sets out the procedures and requirements for monitoring activity conducted by the KPPU Secretariat. Article 3 paragraph 5 establishes the amount of the fines that will be imposed. For each day of delay, a business is subject to fine between IDR 1 billion (minimum) and IDR 25 million (maximum). Under such impose the business actors by may appeal the fines, up to of 14 days after the decision (Article 5 paragraph 1).