Chapter 1: Introduction to Competition Law

The rise of competition law in Indonesia gained momentum after Joko Widodo was elected as President in 2014. Despite ongoing debates about the necessity of such legislation, the government began to prioritize competition sectors.

In 1999, Indonesia faced a severe financial crisis, prompting the International Monetary Fund (IMF) to offer assistance, contingent upon the government's commitment to certain terms. One of these conditions was the introduction of competition law, leading to the implementation of regulations governing fair competition.

Competition law was formally introduced in 1999 with the enactment of Law No. 5/1999 concerning Anti-Monopoly Practices and Unfair Business Competition ("Law 5/1999"). Three years later, the Business Competition Supervisory Commission (Komisi Pengawas Persaingan Usaha or "KPPU") was established to enforce this law.

Implementing competition law in an agrarian society like Indonesia is challenging, as cultural values often prioritize collaboration over competition. This traditional mindset influences many citizens' perspectives on business practices. The pandemic, however, transformed the market landscape into a battleground for capital, where only businesses with substantial resources were able to endure, while others faced closure.

During this challenging time, competition law proved essential in ensuring the survival of small and medium enterprises (SMEs) in Indonesia. It facilitated the development of policies and regulations aimed at promoting national economic stability. In addition to enforcing Law 5/1999, the KPPU also oversees partnerships as detailed in Law No. 20 of 2008 concerning Small and Medium Enterprises.

KPPU has been proactive in fostering healthy competition through regulatory adjustments and relaxation of certain policies. This support has been crucial in enhancing economic recovery and ensuring fair business practices. The commission has taken a firm stance against large companies engaging in anti-competitive behavior while simultaneously adapting enforcement measures to bolster economic recovery.

Although many SMEs faced hardships in the past two years, KPPU's interventions have allowed numerous businesses to endure and continue operating.

The first video titled "Competition Law in 2 Minutes" provides a concise overview of competition law, highlighting its significance and impact on businesses.

Chapter 2: The Impact of Competition Law on SMEs

As the pandemic unfolded, KPPU's role became even more critical in safeguarding SMEs. By prioritizing regulatory support and monitoring market practices, the commission has ensured that smaller businesses are not overshadowed by larger competitors.

The second video, "Competition Law and Digital Markets Explained in 7 Minutes," elaborates on how competition law adapts to the evolving digital landscape, emphasizing its importance for SMEs in the current economy.