Abstract
The regional economic integration that ensues from the ASEAN Economy Community will not only provide its members with boundless opportunities for economic growth, but also with unprecedented challenges. The demands of a more interconnected regional economy will requirethe Indonesian government, as guardians of the competitive process in the Indonesian market, to protect it from anticompetitive conduct occurring both within and outside of its borders. However, there is a major gap since Indonesia's current competition law does not provide the KPPU with the jurisdiction to investigate, prosecute, or punish violations committed by business actors located outside of Indonesia's territory. Thus, this paper examines the implementation o f the extraterritoriality principle to enable the KPPU and Indonesian courts to exercise jurisdiction over foreign business actors who violate Indonesia's competition law from abroad. This paper employs a comparative approach to analyze the development of the extraterritoriality principle in the US's, EU's, Singapore's, and Malaysia's competition laws. This article concludes by determining how the extraterritoriality principle should be implemented to strengthen Indonesia's competition law enforcement.
Highlights
By the end of 2015, the Member States of ASEAN entered a new historic phase in their economic and trade development
The KPPU is tasked with: (1) Evaluating agreements that may result in monopolistic practices or unfair business competition; (2) Evaluating business activities and/or business actors’ behaviors that may result in monopolistic practices or unfair business competition; (3) Evaluating whether there exists a misuse of dominant position that may result in monopolistic practices or unfair business competition; (4) Taking action according to its authority under Article 36; (5) Providing recommendations and considerations for Government policy relating to monopolistic practices or unfair business competition; (6)Compiling guidelines and/or publications relating to Law No 5 of 1999; and (7) Providing periodic reports of its work results to the President and House of Representatives
The case concerned PT Direct Vision (PDTV),a reported party domiciled in Indonesia; Astro All Asia Networks PC (AAAN), another reported party domiciled in Malaysia; ESPN STAR Sports (ESS), domiciled in Singapore; and All Asia Multimedia Networks (AAMN), domiciled in the United Arab Emirates
Summary
By the end of 2015, the Member States of ASEAN entered a new historic phase in their economic and trade development. Indonesia has taken some positive steps in this direction, as we can see in the draft bill for the amendment to Law No 5 of 1999 (“Antimonopoly Bill”).7The Antimonopoly Bill expands the scope of the KPPU’s jurisdiction so that it can enforce Indonesia’s competition law with business actors located abroad This is based on the re-formulation of the “business actors” definition, which includes those entities who conduct economic activities “inside as well as outside of the territory of the Republic of Indonesia, which has an effect on the Indonesian economy.” the elucidation of the phrase “which has an effect” as a condition for the application of the extraterritoriality principle is nowhere to be found in the Antimonopoly Bill. The countries agreed to accelerate 11 priority sectors for integration to be coordinated by each member, as follows:
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