Indonesia's Competition Commission Intensifies Fight Against Anti-Competitive Practices

Strengthening Economic Growth Infrastructure

Indonesia's Competition Commission (KPPU) is playing a crucial role in supporting the government's ambitious 8% economic growth target by ensuring fair market practices. The commission's proactive approach includes imposing significant penalties on businesses engaging in anti-competitive behavior, with Rp695 billion (approximately USD 43 million) in fines levied as of November 30, 2025. This represents a substantial increase compared to previous years, demonstrating the government's commitment to preventing 'Serakahnomics' - a term used by President Prabowo to describe exploitative business practices that prioritize profits over fair competition.

Key Enforcement Actions

The KPPU's enforcement actions have been comprehensive, covering various sectors and business practices. Some notable developments include:

1. Merger and Acquisition Oversight: KPPU received 141 notifications worth Rp1.3 quadrillion in 2025, with significant activity in mining and logistics sectors
2. Cartel Prevention: Successful elimination of harmful bundling practices in the poultry farming sector
3. Fair Franchise Agreements: Over 5,000 franchise agreements have been made more transparent and equitable for UMKM partners
4. Public Procurement Oversight: KPPU identified bid-rigging practices in 12 cases, ensuring better use of public funds

Supporting Government Programs

The commission has been particularly active in supporting key government initiatives. For the 'Makan Bergizi Gratis' (Free Nutritious Meal) program, KPPU has recommended that supplier selection be made transparent and prioritize UMKM and cooperatives to prevent cartel practices and ensure fair distribution. This proactive approach aims to prevent exploitation and ensure that the benefits of government programs reach the intended recipients.

Challenges and Future Directions

As Indonesia continues to push for higher economic growth, KPPU faces evolving challenges in maintaining fair competition. Emerging issues such as algorithmic collusion and self-preferencing by large digital platforms are becoming significant concerns. In response, KPPU is developing new legal instruments to address these modern anti-competitive practices while continuing to support initiatives like the 'Koperasi Merah Putih' program through better governance practices.

Market Competition Landscape

Indonesia's market competition score currently stands at 52 according to the World Bank's B-Ready 2024 report, with the national business competition index at 4.95/7. To achieve the 8% growth target, studies suggest that the competition index needs to improve by 29% to reach 6.33. This underscores the critical role that KPPU plays in creating a level playing field for businesses, particularly UMKM, and ensuring that economic growth is inclusive and sustainable.