The Indonesia Competition Commission ("KPPU") has introduced a new case handling procedure through KPPU Regulation No. 2 of 2023 on Case Handling Procedure ("New Regulation"). One notable change is the allowance for reported parties to propose a change of behaviour during the investigation stage instead of going through a preliminary examination hearing. If the proposed change is accepted by KPPU and fully implemented by the reported party, the investigation may be dismissed, and no sanctions will be imposed. Previously, a change of behaviour required an admission of guilt and agreement from all reported parties. However, the New Regulation no longer necessitates unanimous agreement among reported parties during the investigation stage. Additionally, the New Regulation provides more detailed technicalities regarding evidence, expands the definition of witnesses, requires company directors to represent business entities during testimonies, and imposes a requirement for all documents submitted to KPPU to be in Bahasa Indonesia.
The introduction of the change of behaviour option during the investigation stage offers reported parties the opportunity to halt the case earlier and potentially minimise adverse impacts such as negative publicity and higher legal costs. However, caution should be exercised as the proposed change must meet specific requirements for KPPU approval and case dismissal. If the proposal is rejected during the investigation stage, another change of behaviour proposal cannot be submitted during the subsequent preliminary examination hearing. Businesses should therefore be prudent in fulfilling the change of behaviour requirements during the investigation stage.
Overall, the New Regulation takes a more stringent approach to case handling procedures, potentially posing technical challenges for reported parties as they navigate through cases under the New Regulation.
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