The Change to the Procedure for Case Management of Partnership Cases
On 17 October 2019, the Indonesian Commission for the Supervision of Business Competition (“KPPU”) issued KPPU Regulation No. 4 of 2019 on The Procedure for Supervising and the Management of Partnership Cases (“KPPU Reg. 4/2019”) which revoked several previous KPPU regulations, i.e. KPPU Regulation No. 1 of 2017 on The Procedure for the Management of Partnership Cases (as amended) (“KPPU Reg. 1/2017”), and KPPU Regulation No. 1 of 2015 on Procedure for Supervising Partnership Cases (as amended) (“KPPU Reg. 1/2015”).Subsequently, on 6 April 2020, KPPU issued Regulation No. 1 of 2020 on Electronic Case Management (“KPPU Reg. 1/2020”) which aims to maximize the use of electronic media in case management, including for partnership cases. As a consequence, unless there is a technical problem, all of the stages explained below will now be conducted using electronic media. We understand that KPPU Reg. 1/2020 is issued to support the implementation of the case management regulated under KPPU Reg. 4/2019 by way of electronic media.In brief, partnership cases are cases related to a violation in the implementation of a partnership between (i) a micro, small, or medium-scale enterprise and a large-scale enterprise; or (ii) between a micro or small-scale enterprise and a medium-scale enterprise, among other things, regarding the following:
- whether a partnership agreement includes a provision regarding transfer of skills in the field of production and management, marketing, capital, human resources, and technology;
- whether (i) a large-scale enterprise owns and/or controls micro, small, or medium-scale enterprise which is its partner, or (ii) a medium-scale enterprise owns and/or controls micro or small-scale enterprise which are its partner; or
- whether a partnership agreement upholds the principles of a partnership and fair business etiquette, ie (i) needing each other, (ii) trusting each other, (iii) developing each other; and (iv) benefitting each other.
The following is a summary of the changes to the Procedure for the Case Management of Partnership Cases under KPPU Reg. 4/2019.
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