Chairman of KPPU emphasizes the urgency of competition law reform in the algorithmic era

Chairman of KPPU emphasizes the urgency of competition law reform in the algorithmic era

Jakarta – The Business Competition Supervisory Commission (KPPU) has highlighted how urgent competition law reform must be enforced to respond to algorithmic disruption that is changing market structures and why this step is important to discuss through the 3JICF forum. Indonesia has built a solid foundation for business competition law for a quarter of a century. However, the economic landscape we face today has completely changed. The transformation of the digital economy has not only changed the way we transact, but has destroyed the traditional market structure we have known so far. The old logic of only measuring market power based on prices and production quantities is no longer sufficient. At the opening of the 3rd Jakarta International Competition Forum (3JICF) held at Danareksa Tower, Jakarta, the Chairman of KPPU, M. Fanshurullah Asa (Ifan) emphasized that the biggest challenge currently is the invisible wall. Scroll to continue content “The power of networks (network effects), giant data accumulation and algorithm-based decision-making have created entry barriers that are difficult for new competitors, especially MSMEs, to penetrate,” Ifan said in a written statement on Wednesday (11/12/2025). Faced with this new reality, KPPU can no longer operate on a business as usual basis. Through the 3JICF forum which carries the theme Legal Reform, International Alignment & Enforcement Evolution, KPPU raised three strategic pillars to maintain the relevance of regulators amid the onslaught of technology. First, Law Reform. We must honestly admit that regulations are often one step behind technology. New forms of dominance such as self-preference (prioritization of own products on your platform) to algorithmic tacit collusion (tacit price agreements by machines) require a paradigm shift. A reactive case-by-case approach must be transformed into a risk-based standard approach. Government policies and business competition laws must be able to detect potential monopolies before the market is distorted. Second, International Alignment. The digital market knows no national boundaries (borderless). Cross-border mergers and strategic acquisitions of data and digital talent require us to speak the same regulatory language as the global community. As a country in the process of joining the OECD and a new member of BRICS, Indonesia needs to harmonize standards, from system interoperability to merger notification regimes, so that Indonesia does not repeat expensive policy experiments, but jump straight to adopting global best practices. In this forum, the presence of global experts such as Andrey Tsyganov (FAS Russia) and professor prof. Rhenald Kasali enriches the participants’ perspectives in dissecting this disruption, to ensure that Indonesia does not walk alone on the global competitive map. Third, the evolution of law enforcement. Policy without enforcement is just rhetoric. In its 25th year, KPPU needs to sharpen its tools. Using digital forensics or artificial intelligence to detect bid trolling in public procurement, which is also a concern in the Artificial Intelligence Roadmap White Paper, as well as protecting MSMEs from unbalanced contracts in the platform ecosystem is a non-negotiable priority. Law enforcement must be sharp and data-driven. The ultimate goal of reform through 3JICF activities is to try to look further, namely creating a competitive market, spurring innovation and building the resilience of the economic ecosystem. Without an open market for new investment and minimal market bottlenecks, the national vision of achieving 8 percent economic growth will be far from achievable. Through 3JICF, KPPU invites all stakeholders, government, business actors, academics and practitioners, to not only discuss but make actionable policy notes. “We must ensure that Indonesia’s economic system remains fair, transparent and offers equal opportunities for every business actor to grow,” Ifan concluded. (acn/ega)

اترك تعليقاً

لن يتم نشر عنوان بريدك الإلكتروني. الحقول الإلزامية مشار إليها بـ *