Among the many devastating impacts, the Covid-19 outbreak has demonstrated how a pandemic can have a significant and adverse effect on economic activities, both from supply and demand perspectives. Market distortion, disruption of supply-chain and increasing demand for various healthcare products and services are among the main issues sparked by the pandemic.
In responding to these issues, businesses might have contemplated certain collaborative measures to aid in alleviating shortage, ensuring that the public receives reliable supply, helping themselves survive, and even achieve efficiency. However, businesses must be aware that the implementation of those joint measures are not without potential legal implications as they may be recognised as anti-competitive conduct under Indonesian Competition Law.
We made this crucial issue the main topic in our recently held webinar, where Mr. Kurnia Toha, the Chairman of the Indonesia Competition Commission (KPPU) participated as one of the panellists. Below are some of the key takeaways on any collaborative business measures, particularly those taken during this pandemic:
This unprecedented gesture by the KPPU will undoubtedly be welcomed and appreciated by businesses. It is worth noting that some types of joint measure can help businesses thrive during this pandemic, while also benefitting to the public when implemented appropriately.
In this respect, we recommend that businesses consider this option based on intensive planning. Given that the KPPU’s prior approval is needed to implement a proposed collaboration that may conflict with Indonesian Competition Law, businesses are strongly advised to carefully prepare their proposal to ensure that the economic and legal benefits of the proposed collaboration are captured to the satisfaction of the KPPU.
HMBC Rikrik Rizkiyana
Farid Fauzi Nasution
AHP Client Alert is a publication of Assegaf Hamzah & Partners. It brings an overview of selected Indonesian laws and regulations to the attention of clients but is not intended to be viewed or relied upon as legal advice. Clients should seek advice of qualified Indonesian legal practitioners with respect to the precise effect of the laws and regulations referred to in AHP Client Alert. Whilst care has been taken in the preparation of AHP Client Alert, no warranty is given as to the accuracy of the information it contains and no liability is accepted for any statement, opinion, error or omission.