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Print articleThe Impact of the COVID-19 Pandemic on Enforcement of Merger Control Rules in Indonesia
April, 2020 - Lia Alizia, Budhy Apriastuti Evita, Golden Mandala
In relation to the COVID-19 emergency, the Indonesian Commission for the Supervision of Business Competition (“KPPU”) has made several adjustments to the enforcement of merger control rules through announcements in its official website and a press release stating that, as of 16 March 2020, they temporarily suspended all law enforcement activities, including notification filing and notification reviewing, until 6 April 2020.After this temporary suspension period, KPPU announced that it is back in operation as of 7 April 2020. However, in order to prevent the COVID-19 from spreading further, KPPU is currently applying a work-from-home system and aims to maximize the use of electronic media, such as emails, phone calls, and teleconferences in providing its services and in the enforcement of merger control rules. This policy is formalized with the enactment of KPPU Regulation No. 1 of 2020 on Electronic Cases Management which was issued on 6 April 2020. This KPPU Regulation deals not only with merger filing, but also on handling and examination of anti-competition law cases and late merger fling reports, among others.Further, in its official website, KPPU announces that any consultation services and reports of violations of anti-competition law can be submitted through [email protected] and [email protected] respectively.
How does it affect the enforcement of merger control rules?Ongoing notificationsUnder KPPU Regulation No. 3 of 2019, there are 2 (two) review stages after filing: the first one is for KPPU to examine and confirm the completeness of the submitted notification documents (60 working days, at most); the second one, assuming the transaction is notifiable, is for the KPPU to assess the notification (90 working days, at most).Due to the temporary suspension, the reviewing of all ongoing notifications which were submitted to KPPU before the temporary suspension was also suspended, which means the temporary suspension should not be counted in the 60 or 90 working days review period.Since the temporary suspension has ended, KPPU will now continue reviewing all ongoing notifications and the 60 or 90 working day review period now continues to apply. However, the parties to the notification (or its counsel) should be prepared if KPPU sends any request for additional information or documents through emails or phone instead of formal letter.
Please click the link below to read the discussions on the upcoming notifications.
Footnotes: M&T Advisory is an email publication prepared by the Indonesian law firm, Makarim & Taira S. It is only intended to inform generally on the topics covered and should not be treated as a legal advice or relied upon when making investment or business decisions. Should you have any questions on any matter contained in M&T Advisory, or other comments generally, please contact your usual M&T contact or [email protected]. Contacts: Lia Alizia: [email protected] |
