Jokowi appointed Commissioners of the Business Competition Supervisory Commission (KPPU)
On January 18, 2024, President Joko Widodo inaugurated the new commissioners of the Business Competition Supervisory Commission (KPPU) followed. The 2024-2029 period will focus on enhancing supervision within sectors that have exhibited below-average performance on the National Competition Index for over the past five years, such as energy and mineral resources, construction, food and digital marketplace. Despite the previous reluctance from House Commission VI, due to the alleged conflict of interest in the selection team, parliament had conducted the fit and proper tests for the candidates.
KPPU was a product of reformation launched in 1999 to eradicate trade monopoly and unfair business practices which more common during Suharto regime. It is one of the key players in the implementation of Omnibus Law on Job Creation. Additionally, the new commission supports the creation of the Law on Digital Markets. Currently, the existing regulation is not designed to manage digital trade and is still focuses on conventional trade.
With regards to the digital markets, KPPU will work closely with the Communication and Informatics Ministry, Cooperative and Small and Medium Enterprises (SMEs) Ministry, Trade Ministry, the Financial Services Authority (OJK), and relevant stakeholders. The absence of a national strategy for digital transformation and a governing body. Discriminatory practices, such as shadow banning and algorithm monopoly are still apparent on digital platforms. The absence of a national strategy for digital transformation and a governing body would harm digital economy development structure and the competitiveness of MSME products due to the invasion of Chinese e-commerce products.
Experts argued that only by addressing resource limitations, ensuring political independence of their commissioners and improving regulatory framework, KPPU can effectively contributing to the betterment of Indonesia’s business ecosystem.