Indonesia has become an official member of the Competition Committee within the Organization for Economic Cooperation and Development (OECD).
The Head of Public Relations and Cooperation Bureau at the Business Competition Supervisory Commission (KPPU) Deswin Nur stated, this membership was ratified through Presidential Decree Number 11 of 2023 regarding Indonesia’s Membership in the Organization for Economic Cooperation and Development Competition Committee, signed by President Jokowi on May 30, 2023.
With this membership, Indonesia can begin adopting business competition policy and law enforcement in accordance with international standards.
KPPU role in promoting compliance with international standards
“The Business Competition Supervisory Commission (KPPU) as the implementing body is increasingly required to play its role in promoting compliance with these international standards,” Deswin said in a written statement, on Friday (16/6).
Therefore, KPPU is expected to ensure that the implementation of business competition policies and law enforcement in Indonesia aligns with OECD Council Recommendations.
These recommendations cover various issues, including transparency and fairness in legal enforcement procedures, policy assessments, competition neutrality, combating bid rigging in procurement, merger analysis, effective measures against cartels, and international cooperation in competition case investigations and trials.
This membership also provides the greatest access for KPPU to utilize OECD’s data/information assets as well as various studies and activities that support the process of business competition supervision.
Indonesia’s membership journey: from observer to Competition Committee
As known, the OECD is an international organization in the field of economics that is responsible for shaping policies for a better quality of life for societies. They aim to create policies that prioritize prosperity, opportunities, and well-being for all their members.
The KPPU stated that the OECD currently has 38 member countries. In the Asia region, only Japan, South Korea, and Turkey are OECD members. Indonesia has not been a member of the OECD until now.
However, Deswin stated that Indonesia’s involvement in the OECD Competition Committee has actually been ongoing since December 15, 2015, with KPPU acting as an observer in the committee.
Since Indonesia was designated as one of the Key Partners (alongside Brazil, China, India, and South Africa) by the OECD in 2007, Indonesia’s relationship with the OECD has been further strengthened through a five-year joint work program in various fields.
“The fourth program is currently being implemented to guide this cooperation from 2022 to 2025,” Deswin said.
Deswin explained that the field of competition policy falls within the scope of cooperation for business climate and digitalization. This cooperation includes capacity development on how pro-competition policies can maximise the benefits of the digital economy.
Furthermore, it involves coordinating assistance between the government and competition authorities in monitoring and enforcing competition policies and laws in the digital market.
