Effectiveness of Handling Cartel Cases by the Business Competition Supervisory Commission (KPPU)

Abstract

One of the prohibitions in Law Number 5 of 1999 concerning the Prohibition of Monopolistic Practices and Unfair Competition is “cartel.” The impact caused by the cartel can not only lead to unfair competition between business actors. However, it can also cause consumer losses due to price increases resulting from the cartel of a product or service. This study aims to analyze the problem regarding the effectiveness of handling cartel cases by the Business Competition Supervisory Commission (KPPU) and what factors impede the handling of cartel cases by the Business Competition Supervisory Commission. This research was conducted using the Juridical method by reviewing applicable laws and regulations, and documents such as case decisions. From the results of studies and interpretations, the handling of the Cartel by the Business Competition Supervisory Commission is still not effective because several cases of business actors were finally decided not to have committed violations. The court annulled several decisions of the Business Competition Supervisory Commission. In contrast, the factors hindering the handling of cartel cases are the lack of public awareness to report the activities of several business actors that lead to cartel indications, the difficulty of obtaining evidence, and several KPPU decisions being annulled by the court at the objection level. This research is intended to produce recommendations to improve the process of handling cases of violations of monopoly practices and unfair business competition, especially cartels.