Article Title

Competition Law in Indonesia: Experience to Be Taken for the Development of Competition Law in China

Publication Title

Washington University Global Studies Law Review


The purpose of this piece is to articulate lessons that can be taken from the adoption and implementation of competition law in Indonesia. The Law, known as Law No. 5 of 1999 Concerning the Prohibition of Monopolistic Practices and Unfair Business Competition, (“Law No. 5 of 1999”) was adopted in 1999. Many Indonesian lawyers agree that the Law is a revolutionary business legal reform, as it prohibits almost all business actors, including state-owned enterprises, from employing unfair business practices. Many of these practices were adopted by many business actors for tens of years. When the economic crisis hit Indonesia in 1998, people suddenly realized that something was fundamentally wrong with the way Indonesian business actors conducted business and with the way the government developed its industrial and economic development policies. In addition, after years of economic calamity, signs of recovery are not yet on the horizon. Many big business players were supported by the government, which created barriers to fair trade. As a result, business opportunities were rare, unless a business player collaborated with another more established business in the market. This discussion will begin with lessons from the adoption of the law, its development, and the challenges ahead.