Guidelines on Mergers, Consolidations or Acquisitions Assessments Issued by Indonesia’s Competition Commission

Knowledge Highlights 05 February 2021

The Indonesian Competition Commission (“KPPU”) recently issued Guidelines on Mergers, Consolidations or Acquisitions Assessment (“Guidelines”) as a follow-up to KPPU Regulation No.3 of 2019 on the Assessment of Mergers and Consolidations of Business Entities or Acquisition of Shares in Companies that May Result in Monopolistic and/or Unfair Business Competition Practices (“Regulation 3/2019”), which was issued last year. Please see our previous client update on Regulation 3/2019 here.

Despite the title of the 94-page Guidelines suggesting that it would only provide a technical and implementing directive for KPPU officers and businesses in conducting these assessments for the notification of mergers, consolidations, acquisitions and asset transfers, the Guidelines provide various adjustments, clarifications and (in some ways) limitations, on provisions that are not sufficiently explained in Regulation 3/2019. This includes, among others, elaboration on the types of transactions that must be notified and exemption of notification requirements for the establishment of joint ventures that do not involve a merger, consolidation or share acquisition, clarification of asset transfers that do not require notification and the introduction of a simple notification procedure.

For full article, please click here.