Decisions of ICC on Partnership Cases Are Final in Nature, Business Actors Must Execute The Decisions.

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Jakarta (26/08) – Decisions of the Indonesia Competition Commission (ICC) on Micro, Small, and Medium Enterprises (UMKM [MSMEs]) partnership cases, particularly the violations of Article 35 paragraphs(1) and (2) of Law Number 20 of 2008 regarding MSMEs (Law No. 20/ 2008) are final in nature. There are no further legal remedies being mentioned against the decisions for such type of cases, whether based on Law No. 20/2008 and the implementing regulations thereof, Government Regulation No. 17/2013 (GG No. 17/2013). In light of such matter, business actors decided guilty by ICC in partnership cases, are obligated to execute decision of ICC within 30 (thirty) working days as from the acceptance of the excerpts/copies of the decisions or as from the announcement of the decisions on the official website of ICC. If exceeding suchperiod, then such decisions are already binding.

As we know it, ICC has started handling various partnership cases using Regulation of ICC No. 4/2019 regarding Procedures for the Supervision and Handling of Partnership Cases, which constitutes the implementing regulation of Law No. 20/2008 and Government Regulation No. 17/2013. Several cases have been decided as from the beginning of 2022. In its final decision, ICC has decided that PT Sinar Ternak Sejahtera is proven to have violated the partnership and has imposed a penalty of IDR10 billion as well as a recommendation for the revocation of its business license if not executing the order for making improvements in its partnership cooperation agreements. The decision read out on July 29, 2022 constitutes the first guilty decision issued by ICC with regard to a partnership case. PT Sinar Ternak Sejahtera is given 6 (six) months to execute the order to rectify the partnership agreement in the said decision and to pay for the penalty by no later than 30 (thirty) days as from the decision has had a permanent legal force.

For a decision that is already binding or has had a permanent legal force, ICC can submit suchdecision to a district court to ask for a stipulation of execution. In addition to the above, ICC can also take other actions in the form of persuasive measures, written warnings, announcements in the print/electronic media, and/or including the business actors in the black list of ICC.