Mandatory Post Merger Notification Under the Merger Review Regulation in Indonesia
| Main Author: | Anggraini, Anna Maria Tri |
|---|---|
| Format: | Proceeding PeerReviewed Book |
| Bahasa: | eng |
| Terbitan: |
, 2013
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| Subjects: | |
| Online Access: |
http://libprint.trisakti.ac.id/3/1/Anna%20Maria%20Tri%20Anggraini-Abst%20No%2010.pdf http://libprint.trisakti.ac.id/3/ http://law.nus.edu.sg/asli/index.aspx |
Daftar Isi:
- Merger control in Indonesia is based on the Indonesia Anti-Monopoly Law No.5/1999 and it is specifically set forth in Government Regulation 57/2010 providing for mandatory notification to the competition authority under the threat of fines for late reporting. It is rather unique compared to merger regulations in general which tend to focus on pre-merger notification. Companies meeting certain thresholds based on assets or sales value are required to conduct notification. The process of merger review has to go through the formal (procedural) and substantive stages. The formal/procedural stage is concerned with the fulfillment of certain qualifications such as meeting the criteria as an effective merger acquisition, affiliations, and exceeding the thresholds. The substantive stage involves the assessment of entry barriers, potential anti-competition conduct, inefficiencies and the prevention of bankruptcy. The Commission’s opinion issued in the final stage of assessment can be in the form of no objection, objection, or conditional no objection. Any violations of Law No.5/1999 found by the Commission are processed further through the case examination process, in compliance with the prevailing rules. GR 54/2010 also provides for voluntary pre merger notification. The incentive is that once the Commission’s no objection letter is obtained, there is no need to go through examination in the mandatory post merger notification process. However, the Commission’s opinion is non-binding. Therefore, business actors still prefer to conduct post merger notification despite the potential exposure to relatively high fines. Limited availability of data and a lack of awareness among business actors are some of the main challenges in the implementation of GR 54/2010. Cooperation and policy harmonization with relevant agencies such the Ministry of Law and Human Rights, the Capital Markets Supervisory Agency and Bank Indonesia need to be explored in the future.