Makarim & Taira S.
  April 16, 2020 - Indonesia

The Change to the Procedure for Case Management of Partnership Cases
  by Golden Mandala

On 17 October 2019, the Indonesian Commission for the Supervision of Business Competition (“KPPU”) issued KPPU Regulation No. 4 of 2019 on The Procedure for Supervising and the Management of Partnership Cases (“KPPU Reg. 4/2019”) which revoked several previous KPPU regulations, i.e. KPPU Regulation No. 1 of 2017 on The Procedure for the Management of Partnership Cases (as amended) (“KPPU Reg. 1/2017”), and KPPU Regulation No. 1 of 2015 on Procedure for Supervising Partnership Cases (as amended) (“KPPU Reg. 1/2015”).Subsequently, on 6 April 2020, KPPU issued Regulation No. 1 of 2020 on Electronic Case Management (“KPPU Reg. 1/2020”) which aims to maximize the use of electronic media in case management, including for partnership cases. As a consequence, unless there is a technical problem, all of the stages explained below will now be conducted using electronic media. We understand that KPPU Reg. 1/2020 is issued to support the implementation of the case management regulated under KPPU Reg. 4/2019 by way of electronic media.In brief, partnership cases are cases related to a violation in the implementation of a partnership between (i) a micro, small, or medium-scale enterprise and a large-scale enterprise; or (ii) between a micro or small-scale enterprise and a medium-scale enterprise, among other things, regarding the following:

  1. whether a partnership agreement includes a provision regarding transfer of skills in the field of production and management, marketing, capital, human resources, and technology;
  2. whether (i) a large-scale enterprise owns and/or controls micro, small, or medium-scale enterprise which is its partner, or (ii) a medium-scale enterprise owns and/or controls micro or small-scale enterprise which are its partner; or
  3. whether a partnership agreement upholds the principles of a partnership and fair business etiquette, ie (i) needing each other, (ii) trusting each other, (iii) developing each other; and (iv) benefitting each other.

The following is a summary of the changes to the Procedure for the Case Management of Partnership Cases under KPPU Reg. 4/2019.



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]
Harris Syahni Toengkagie: [email protected]
Jonathan Toni Tjenggoro: [email protected]
Golden Mandala: [email protected]