Constitutional Court rules the term of Other Party in Bid Rigging provision.

The Indonesia’s Constitutional Court has read out the judicial review of Law No. 5 of 1999 (Law No. 5 of 1999) on Prohibition of Monopolistic Practices and Unfair Business Competition against the 1945 Constitution of the Republic of Indonesia, on 20th September 2017.

In the Decree Number 85 / PUU-XIV / 2016, the Constitutional Court ruled that the use of the phrase “other party” in Article 22, Article 23 and Article 24 of Law No. 5 of 1999 was contradictory to the 1945 Constitution conditional and unenforceable binding as long as not otherwise defined “and / or Parties Related to Other Business Actors”.

Whereas the phrase “investigation” in Article 36 c, d, h, and i, and article 41 paragraph (1) and paragraph (2) of Law No. 5 of 1999 contravenes the Constitution of the Republic of Indonesia in 1945 on condition of conditional and has no legally binding law as long as it does not mean “collection of evidence as an examination material”.

On the verdict, KPPU Chairman, Syarkawi Rauf conveyed his appreciation to the Constitutional Court which has given legal certainty in enforcing business competition law. “The Constitutional Court has thoroughly considered the importance of applying the phrase of another party in the enforcement of competition law in particular in responding to and balancing the complexity of existing conventional mode not only among business actors in conventional sense but also related parties to” show Syarkawi.

Syarkawi also agrees with the Constitutional Court regarding the phrase of the investigation and / or examination in Article 36 c, d, h, and I, and article 41 paragraph (1) and paragraph (2) of Law No. 5 of 1999 shall be construed as a collection of evidence as an examination material, not an investigation as referred to in Law No. 8 of 1981.
“Furthermore, the verdict of the Constitutional Court is expected to further strengthen KPPU’s competition law enforcement efforts, as well as the institution itself”, closing Syarkawi.