INSTITUTION OF INSTITUTIONAL COMMISSION REGULATION OF BUSINESS COMPETITION IN LAW NUMBER 5 OF 1999 CONCERNING PROHIBITION OF MONOPOLY PRACTICE AND BUSINESS COMPETITIVENESS NOT HEALTHY

Abstract

While the efforts of the Government of Indonesia itself to establish a business, competition law has started since the 1970s. Various bills and academic texts were raised at the time, but it was only in 1998 when the economic crisis hit Indonesia, under pressure from the International Monetary Fund, talks on the formation of the law were seriously carried out, and only in 1999 was finally enacted. The birth of this law was motivated by (1) the business competition system in the new order with a pattern of power that prioritized groups and their cronies so that they could benefit from the monopoly market system, (2) Mandate of Article 33 of the 1945 Constitution, about economic democracy and (3) in anticipation of the impact of the economic crisis in Indonesia in 1998. This research was conducted in order to explore the actual evidence regarding the weaknesses and emptiness of the law in Law No. 5 of 1999 concerning the Prohibition of Monopolistic Practices and Unfair Business Competition and their impact, and the establishment of the Business Competition Supervisory Commission (KPPU) as a legal institution that functions as an institution that controls community behavior in the economic field based on Article 33 Paragraph (4) of the 1945 Constitution and business world practices in accordance with the objectives and applicable legal norms. This research uses normative legal research, the emphasis is on literature study with legal research focused on studying the application of the rules legal norms or norms in positive law. The focus of the discussion is on a juridical study of the position of the KPPU Institution in the Indonesian constitutional system. The approach method is the content analysis method, to describe the material legal events or other legal products, in order to facilitate interpretation in the discussion. From the results of this study, it is hoped that the facts that Law No. 5 of 1999 concerning the Prohibition of Monopolistic Practices and Unfair Business Competition, which is currently in force can be proven to be true that there are still weaknesses and legal vacuum so that the law has not been able to meet the demands.