The Signing of Memorandum of Understanding between KPPU and BPKN (National Consumer Protection Agency).

Thursday, April 11, 2019

During the World Consumer Day on March 15, KPPU and the National Consumer Protection Agency (BPKN) agreed to sign a memorandum of understanding and cooperation agreement aimed at materializing cooperation and coordination between KPPU and BPKN. Taking place at the KPPU’s Headquarter, the signing of memorandum of understanding was conducted by the Vice Chairman of KPPU, Ukay Karyadi and the signing of the cooperation agreement was conducted by the Interim Secretary General of KPPU, Charles Pandji Dewanto.

The scope agreed upon in the memorandum of understanding includes the exchange of data and/or information, dissemination, and/or advocacy, the granting of resource person and/or expert assistance, and other activities agreed upon by both sides.

In his opening remarks, the Vice Chairman of KPPU, stated that fair business competition and consumer protection overlap very strongly. The impacts of unfair business competition will be felt by consumers both directly and indirectly. Several articles in Law No. 5/1999 explicitly mention consumers and/or the word buyers to assert consumer protection from the impacts of such unfair business competition.  The behaviors of cartel for example will directly reduce the welfare of consumers through excessive prices. The behaviors of the abuse of dominant position will affect consumers in the form of limited choices available in the market and certainly the prices that must be paid become uncompetitive.

Based on the competition violation cases handled by KPPU, it can be summed up that the existence of losses suffered by consumers is real. For example, the assessments conducted by KPPU shown the losses suffered by consumers for SMS tariff cartel reached IDR 2.8 trillion in the two-year period of violation. Not to mention other cases resulting in significant estimated amount of consumer loss.

Through this cooperation, KPPU and BPKN will collaborate in the exchange of information, dissemination, advocacy, and other various efforts so as to create a close and synergized cooperation. It is expected that with this cooperation, fair business protection efforts and consumer protection efforts will be improved.