The implementation of Law No. 11 of 2020 on Job Creation (“Job Creation Law”) has brought many changes on legal regime in Indonesia. One of which, is the removal of the maximum amount of fines to the company which violates Law No. 5 of 1999 on Prohibition of Monopoly Practices and Unfair Business Competition (“Anti-Monopoly Law”).
Previously, the Anti-Monopoly Law provides a minimum amount of IDR 1 billion and maximum amount of IDR 25 billion on fine imposition. Meanwhile, the Job Creation Law provides a removal of the maximum amount on fine imposition.This removal gives KPPU permission to impose fines on companies that violate Anti-Monopoly Law without the limit of the maximum amount fines. However, this removal has been further limited through Government Regulation No. 44 of 2021 on Implementation of the Prohibition of Monopoly Practices and Unfair Business Competition and Regulation of Indonesia Competition Commission No. 2 of 2021 on Guidelines for the Imposition of Final for Violations of Monopoly Practices and Unfair Business Competition. These regulations sees the sanction is to be imposed based on (i) maximum of 50% of any net profits generated by the company within the relevant market and (ii) maximum o 10% of any total relevant sales, and to be determined by considering (i) negative impacts caused by the violation, (ii) duration of the time the violation occurred, (iii) mitigating factors, (iv) aggravating factors, and/or (v) the ability of the company to pay the relevant fine.