12 June 2024
The Indonesian Competition Commission (Komisi Pengawas Persaingan Usaha, KPPU) has been carrying out enforcement against unfair contract terms (UCT) since February 2022, resulting in six decisions with three infringement findings. KPPU has the authority to examine UCT cases based on Law No. 20 of 2008 on Micro, Small and Medium Enterprises, as amended ("Law 20/2008"), and recently introduced a regulation on the procedures for handling UCT cases, in the form of KPPU Regulation No. 2 of 2024 ("New UCT Case Handling Regulation"). This new regulation revoked KPPU Regulation No. 4 of 2019 on the same topic ("KPPU Reg No. 4 of 2019"). This revision follows KPPU's new leadership action plan, which has an increased focus on UCT between large and medium corporations and small and micro enterprises.
This approach by the KPPU is aligned with the continuous focus on UCT monitoring in Asia Pacific (e.g., in Australia and Thailand).
Revisions in the New UCT Case Handling Regulation include aligning evidence in the investigation of UCT cases with competition cases (as regulated under KPPU Regulation No. 2 of 2023 on Case Handling, "Case Handling Regulation"), allowing incidental summonses, and amending the process and timeline of investigation.