The Compliance Program developed by the Business Competition Supervisory Commission (KPPU) is a strategic initiative designed to strengthen the awareness and behavior of business actors to comply with the principles of healthy business competition and applicable regulations in Indonesia, especially Law Number 5 of 1999 concerning Prohibition of Monopoly Practices and Unfair Business Competition. This program consists of a series of activities prepared in writing by business actors and reflects the company's commitment to implementing the principles of fair competition in every aspect of its business operations.

Participation in the Compliance Program is not only a form of readiness to fulfill legal requirements, but also a proactive way for business actors to create a culture of compliance that is integrated into corporate governance. Through this program, business actors are expected to be able to identify areas that have the potential to cause violations, implement clear internal guidelines, and develop effective prevention mechanisms against the risk of unfair competition practices such as cartels, unfair pricing and collusion in procurement.

The benefits obtained by business actors who implement the Compliance Program are quite extensive. These include maintaining the company's good name and reputation in the eyes of stakeholders, strengthening corporate governance through a code of ethics and internal compliance guidelines, and increasing trust from investors, consumers, business partners and regulators. Apart from that, this program also encourages business actors to maintain healthy competition values ​​and prevent violations of the Business Competition Law.

This program is also legally regulated through KPPU Regulation Number 1 of 2022 concerning Business Competition Compliance Programs, which provides a formal framework regarding the preparation, registration, evaluation and determination of compliance programs. Through this arrangement, the KPPU not only encourages business actors to comply, but also supports the provision of reduced sanctions for business actors who already have a compliance program if they are later proven to have committed business competition violations.

At a macro level, the existence of a Compliance Program is part of the preventive approach adopted by many business competition authorities in the world to minimize the risk of violations and to instill a culture of compliance in daily business practices. Thus, this program is not only a legal instrument, but also a tool for business actors to strengthen the internal structure of the organization, increase HR competency related to business competition law, and mitigate business risks related to non-compliance with competition regulations.

How do I take part in the compliance program at KPPU?

Procedurally, the flow of participation begins with official registration for the program by business actors through a registration letter signed by the company management and attached with supporting documents such as code of ethics documents, compliance guidance documents, and reports on the implementation of outreach activities, counseling, training, and/or other activities in the context of implementing the Compliance Program in the company.

These various documents are sent via electronic mail atprogramkepatuhan@kppu.go.id.

After registration, KPPU evaluates the documents and implementation of the program. If it meets the established standards, KPPU will provide a Compliance Program Determination that is valid for a certain period of time.

For complete rules, see KPPU Regulation No. 1/2022 concerning the Business Competition Compliance Program and its Attachments.

For questions and answers regarding the compliance program, you can refer to the MEDIA & PUBLICATION / FAQ menu (https://kppu.go.id/media-publikasi/faq).