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Reporting Before Mergers and Acquisitions Can Prevent Monopoly Practices

Reporting Before Mergers and Acquisitions Can Prevent Monopoly Practices
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JAKARTA - Reporting prior to merger and acquisition action is necessary to prevent unhealthy competition.

Vice Chairman of KPPU Kurnia Sya'ranie said since 2010, the authority of KPPU to supervise merger and acquisition can be executed by the issuance of Government Regulation no. 57 of 2010 concerning Merger or Consolidation of Business Entities and the Acquisition of Shares of the Company that Can Cause Monopolistic Practices and Unfair Business Competition.

"KPPU has issued several derivative rules related to the implementation of supervision of acquisition merger, among others: KPPU Regulation No. 2 of 2013 on Third Amendment to KPPU Regulation No. 13 of 2010 on Guidance on Implementation or Consolidation of Business Entities and Shares Acquisition that Can Cause Monopolistic Practices and Unfair Business Competition," said Kurnia on the sidelines of 'Socialization of Corporate Acquisition of Merger Acquisition by SOEs in a Business Competition Perspective' in Jakarta, recently.

He added that in the course of 2010-2016, KPPU has received 309 notifications and has issued as many as 255 opinions of the Commission regarding the merger of acquisition.

"Among those opinions are some related to acquisitions conducted by state-owned enterprises such as Pertamina's subsidiary, Housing Development, Jasa Marga, Mandiri and BRI Bank," said Kurnia.

KPPU continued Kurnia, realized that the supervision of mergers and acquisitions made during this time is not perfect and there are still shortcomings. This imperfection is inseparable from the shortcomings contained in Law Number 5 Year 1999 which limits the authority of KPPU in conducting supervision of acquisition merger.

"Mergers and acquisitions assessments have proven that KPPU has an important role to ensure that mergers and acquisitions carried out by BUMNs have no adverse impact on business competition and prevent monopolistic practices," he said.

With the strengthening of this authority, Kurnia continued, it is hoped that the process of supervision of merger and acquisition by KPPU becomes more effective and ensures that the mergers and acquisitions conducted have a positive impact on the efficiency and economy of Indonesia.

"That's why KPPU hopes that the amendment process of Law No. 5/1999 can run smoothly and give wider authority to KPPU to conduct merger and acquisition supervision," he said.



(rnz)