Boosting Prevention, ICC Issues Regulation on Competition Compliance Program.
Jakarta (7/4) – Indonesia Competition Commission (ICC) has issued Regulation of ICC Number 1 Year 2022 regarding Competition Compliance Program to improve the compliance of business actors with competition law. The program intended as a prevention effort constitutes a series of activities prepared and developed by business actors to demonstrate their compliance with the principles of fair business competition in their business activities. The compliance program can be registered with ICC for evaluation and its Stipulation. The Regulation of ICC plays a part in regulating the granting of relief from the penalties that will be imposed by ICC, if business actors who have registered their compliance program are proven to have violated Law No. 5 of 1999. The above-mentioned Regulation of ICC takes effect as from the date of its promulgation, viz., March 24, 2022.
It is a well-known fact that business actors must comply with Law No. 5 of 1999 in conducting their business activities. Therefore, they need to adopt the principles of fair business competition. Compliance with business competition can, among other things, maintain the good repute and reputation of companies and can enhance the trust of investors and various stakeholders. The said Regulation of ICC comes into existence to provide understanding of compliance, boost business activities so as to be in line with competition, and provide guidance for business actors to prepare their compliance programs. The regulation plays a part in regulating procedures for registering compliance programs with ICC, implementing and evaluating compliance, and Stipulating compliance programs.
In order to make a compliance program, the first step business actors need to take is to register the program with ICC. The business actors then report the implementation of the preparation of their compliance program. ICC will evaluate the implementation of the compliance program preparation through a Commission session. If there is a need for improvement, ICC will return the report on the implementation of the preparation of the compliance program. If approved already, then ICC will issue a Compliance Program Stipulation pronounced in a Commission session. The Stipulation of Compliance Program is valid for 5 (five) years and can be extended.
The existence of a business competition compliance program has become the best practice in various global business competition authorities to minimize infringement risks by business actors. ICC expects that business actors, particularly state/regional government-owned enterprises, large, multinational, and export-oriented companies can adopt the said competition compliance program in order to support the credibility of the companies in the eyes of the international community.