Leniency Program to Prove the Cartel in the Enforcement of Business Competition Law

Muhammad Zulfadli ,Ahmadi Miru ,Anwar Borahima ,Winner Sitorus

doi:10.7176/jlpg/87-14

Abstract

The strongest characteristic of the cartel is the nature of the confidentiality of the agreement. Because confidentiality makes proof very difficult. The difficulty of proving a cartel case is due to the limited authority of the KPPU in carrying out its duties. In connection with the difficulty in expressing the cartel, business competition authorities in several countries such as the United States, Japan, Australia and countries that are members of the European Union have implemented punitive relief programs. the main purpose of implementing a sentence relief program. The purpose of implementing a penalty relief program is for cartel actors to report their violations to competition authorities; giving a cold effect that prevents the formation of a cartel; and to obtain further information (evidence) regarding the existence of a cartel. Therefore, the implementation of a penalty relief program in business competition law in Indonesia is very urgent. Implementation of a penalty relief program will be effective if there is a strong legal basis in business competition law. Further suggestions to the Government and Parliament of the Republic of Indonesia need to amend Law No. 5 of 1999 by regulating provisions in a comprehensive manner regarding the sentence relief program. Keyword: cartel, law enforcement, leniency program. DOI : 10.7176/JLPG/87-14 Publication date :July 31 st 2019

Highlights

One form of abuse of business actors' freedom is by carrying out cartel practices, which are realized in the form of agreements, both written and oral
Paripurna Sugarda believes that cartel practices in Indonesia are caused by several factors, namely: 1) There is a large percentage of assets that are controlled by a small percentage of business actors; 2) Control of business actors in parliament and executives through political parties is still quite large; 3) The existence of a conglomerate system including vertical integration and market share control; 4) Markets with an oligopolistic structure; 5) Difficulty in proving because the applicable regulations are inadequate; 6) The authority of the KPPU is still limited
1) to encourage cartel actors to report their violations to competition authorities; 2) in the long term, leniency program arrangements are expected to provide a deterrent effect that prevents the formation of cartels; 3) to get more information about the whereabouts of the cartel and reduce the costs of law enforcement and prosecution

Summary

Introduction

One form of abuse of business actors' freedom is by carrying out cartel practices, which are realized in the form of agreements, both written and oral. The purpose of implementing a penalty relief program is for cartel actors to report their violations to competition authorities; giving a cold effect that prevents the formation of a cartel; and to obtain further information (evidence) regarding the existence of a cartel.

Results

Conclusion