Competition Law: The New Benchmark of Administrative Fines

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On 31 May 2021, the Indonesia Competition Commission (ICC) enacted new competition law regulations relating to the calculation and payment of fines and bank guarantees for the breach of competition law (the Regulations).*

Fines

The Regulations set the minimum fine at IDR 1 billion (approximately US$70,000). Fines for breach of competition law can then be up to a maximum of 50% of net profit or 10% total sales in the relevant market, calculated during the breach period. Various factors will be taken into account when determining fines including the impact of the breach, any special mitigating factors, and the ability of the business entity to pay.

Bank Guarantee

A business that plans to appeal against an ICC decision must provide to the ICC chairman, within 14 business days of the ICC’s decision, a bank guarantee from an Indonesian bank up to the value of 20% of the fine issued by the ICC decision.

Fine Payment Methods

ICC fines must be paid no later than 30 business days after the business entity receives notification of the ICC Decision. The ICC may impose a late payment penalty. Businesses may request leniency or a payment plan. Such requests must be submitted within 14 business days after receipt of the notification of the ICC decision.

* The ICC Regulations No. 2/2021 on the Guidelines for the Imposition of Fines for Monopolistic Practices and Unfair Business Competition were implemented in accordance with Regulation No. 44/2021 on the Implementation of Prohibition of Monopolistic Practices and Unfair Business Competition and Law No. 11/2021 on Job Creation.