Merger Notification.

Merger and or Consolidation of Business Entities or Acquisition of shares of other companies causing the asset value and/or sale value exceeding a certain amount must be notified in writing to the KPPU by no later than 30 (thirty) business days as from the date on which the Merger and or Consolidation of Business Entities or the Acquisition of shares of other companies is legally in effect.

A certain amount as intended above shall consist of:

1. asset value in the amount of Rp2,500,000,000,000.00 (two trillion and five hundred billion rupiah); and/or
2. sale value in the amount of Rp5,000,000,000,000.00 (five trillion rupiah).

As for Business Entities engaging in the banking sector, the obligation to provide written notice shall be applicable in the event that the asset value exceeds Rp20,000,000,000,000.00 (twenty trillion rupiah).

The asset value and/or sale value shall be calculated based on the total of asset value and/or sale value of:

1. Business Entity resulting from the Merger, Business Entity resulting from the Consolidation or Business Entity acquiring the shares of other company and the Business Entity acquired; and
2. Business Entity which directly or indirectly controls or is controlled by Business Entity resulting from the Merger, Business Entity resulting from
3. the Consolidation or Business Entity acquiring shares of other companies and the Business Entity acquired.

Business Actors intending to conduct Merger and or Consolidation of Business Entities or Acquisition of shares of other companies making its asset value and/or sale value exceeds the certain amount may hold written or oral consultation with the KPPU. The written consultation shall be conducted by completing the form and submitting the documents required by the KPPU.

KPPU will conduct the assessment based on the form and documents received, and based on the assessment, KPPU will provide written advice, guidance and/or opinion concerning the plan for Merger and or Consolidation of Business Entities or Acquisition of shares of other companies.

The written advice, guidance and/or opinion will be provided within a maximum period of 90 (ninety) business days as from the date of receipt of complete form and documents by the KPPU.

However, the assessment provided by the KPPU will not constitute approval or rejection of the plan for Merger and or Consolidation of Business Entities or Acquisition of shares of other companies and shall not remove the authority of the KPPU to conduct assessment after the Merger and or Consolidation of Business Entities or the Acquisition of shares of other companies is legally in effect. Thus, post-merger notification is still mandatory.

Please click the link below to get more information on recent merger notification.