Legal Implications of Mergers and Acquisitions on Competition Regulation in Indonesia
Keywords:
Merger,, Acquisition, Business Competition, KPPU, Regulation HarmonizationAbstract
This study examines the legal implications of mergers and acquisitions on competition regulation in Indonesia, focusing on the effectiveness of supervision conducted by the Business Competition Su-pervisory Commission (KPPU) and the challenges in harmonizing regulations with international standards. Although mergers and acquisitions are often seen as important corporate strategies for expansion and efficiency, these activities also have the potential to create monopolistic practices and unfair business competition if not properly supervised. This study finds that although KPPU has an important role in overseeing mergers and acquisitions activities, there are significant challenges such as limited resources, bureaucratic complexity, and potential political intervention that can hinder the effectiveness of supervision. In addition, harmonizing regulations with international standards faces no less significant challenges, including differences in legal systems and resistance from domestic business actors. To ensure that mergers and acquisitions do not harm the climate of business com-petition, it is necessary to increase transparency in supervision, increase KPPU capacity, and support policies that ensure domestic regulations are in line with international commitments
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