The ruling hearing of the material judicial review of Law No. 5 of 1999 on the Prohibition of Monopolistic Practices and Unfair Business Competition, Thursday (9/29/2022). Photo by MKRI/Ifa.

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Friday, September 30, 2022 | 19:58 WIB

JAKARTA (MKRI)—The Constitutional Court (MK) rejected the material judicial review of Law No. 5 of 1999 on the Prohibition of Monopolistic Practices and Unfair Business Competition (LPMPUTS Law) as amended by Law No. 11 of 2020 on Job Creation petitioned by Barid Effendi and Dedy Sani Ardi (Petitioners I-II). The Decision No. 76/PUU-XX/2022 was read out at a ruling hearing on Thursday, September 29, 2022 in the plenary courtroom.

In its legal considerations, the Court asserted that relating to the determination of the status of the Commission for the Supervision of Business Competition (KPPU) secretariat including its employees, in addition to following up on the Constitutional Court Decision No. 54/PUU-XVIII/2020, it was imperative for the legislature to immediately restructure the KPPU secretariat based on its development as a state institution through statutory laws and regulations.

Such a restructuration would be in line with the legislature’s intention, as the plan to revise the LPMPUTS Law had been included in the National Legislation Program (Prolegnas) for 2014-2019, as stated in the Decree of the House of Representatives No. 19/DPR RI/I/2018-2019 on the Prolegnas Priority List for 2019 and Changes in the Prolegnas for 2015-2019 Bills, and in the Decree No. 8/DPR RI/II/2021-2022 on Prolegnas Priority Bills for 2022 and Prolegnas for Third Amendment of 2020-2024.

Moreover, it is mentioned in the Presidential Regulation (Perpres) No. 2 of 2015 on the 2015-2019 National Medium-Term Development Plan (RPJMN) and the Presidential Regulation No. 18 of 2020 on the 2020-2024 RPJMN, which emphasizes the importance of strengthening the KPPU so that it can play a greater role in encouraging economic growth and stimulate a conducive environment for economic activities in domestic or foreign markets.

“Therefore, the Court is of the opinion that the legislative planning process for the revision of Law No. 5 of 1999 can be hastened according to the Prolegnas target,” said Constitutional Justice Suhartoyo when reading out the legal considerations.

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Legitimacy of KPPU Secretariat Questioned 

Petitioners Revise Petition Against Provision on KPPU Secretariat

In the petitum, the Petitioners requested that the Court declare the word ‘secretariat’ in Article 34 paragraph (2) of the LPMPUTS Law conditionally unconstitutional insofar as not interpreted as “a secretariat determined by the president” and the phrase ‘a decision of the Commission’ conditionally unconstitutional insofar as not interpreted as “the regulation of the Commission after obtaining the president’s approval.” The Court did not grant the unusual petitum, but the substance of the Petitioners’ request was an inseparable part of the adjustment to the KPPU. Based on those legal considerations, the Court declared the entire petition legally groundless.

Writer        : Utami Argawati
Editor        : Nur R.
PR            : Andhini S. F.
Translator  : Yuniar Widiastuti (NL)

Translation uploaded on 10/17/2022 19:02 WIB

Disclaimer: The original version of the news is in Indonesian. In case of any differences between the English and the Indonesian versions, the Indonesian version will prevail.

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