KPPU Established a Directorate on Partnership Supervision.

Tuesday, December 20, 2016

KPPU has been given a new assignment by the Law No. 20 Year 2008 on Micro, Small and Medium Enterprises (MSMEs) and it’s implementing regulations, Government Regulation No. 17 Year 2013 to carry out supervision and enforcement of partnership between large enterprises and micro, small, and medium enterprises. In performing the new task, KPPU has issued two (2) new regulations, namely Regulation No. 1/2015 on Procedures for Monitoring the Implementation of the Partnership and Regulation No. 3/2015 on Procedures for Handling Case for the Implementation of Partnership.

Both rules are explained KPPU’s way of supervision, including in understanding the scope and form of partnership which overseen by KPPU, and potential violations which may harm the micro, small, and medium enterprises. Moreover, the rules also regulate forms of law enforcement procedures for partnership violation, through the investigation and up to three times written warning to businesses, and the sanction. The law stipulates that the maximum penalty that can be provided is the revocation of business licenses, and sanctions for abuse of a dominant position define by competition law.

In order to implement such important role, KPPU has established a new directorate, names the Directorate on Partnership Supervision, in 23 November 2016 under the KPPU Regulation No. 5 Year 2016 on the Amendment of KPPU Regulation No. 1/2014 on Organization and Management of KPPU. Under this regulation, the Directorate is placed under the Deputy for Prevention and shall be effective at the signing date.

The Directorate has a coordinative role in implementing the supervision of partnership. It has several tasks as follows, (i) to coordinate advocacy under the principle of mutual need, benefit, empowerment, and trust between MSMEs and large-sized enterprises; (ii) to coordinate monitoring and research on partnership; (iii) to coordinate implementation of cooperation with stakeholder and or other parties on partnership; (iv) to coordinate management of database and information on MSMEs; and (v) to coordinate evaluation and development of system procedure, method and instrument to optimize partnership supervision.

It hopes that the new Directorate can effectively start their role in 2017, following the on-going internal process to fill the required human resources. The establishment of this directorate will remark the required instrument to implement the partnership law, specifically on competition aspects of partnership under KPPU’s purview.