25 February 2021
The Indonesian Competition Commission (“KPPU”) recently issued the 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.
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.
This is an extract of an article by Soemadipradja & Taher, an Indonesian law firm with which Allen & Gledhill has a strategic alliance. To read the full article, please click here.