10.47313 A Legal Analysis of the Effectiveness of Indonesian Business Competition Law in Addressing Monopolistic Practices

A Legal Analysis of the Effectiveness of Indonesian Business Competition Law in Addressing Monopolistic Practices

Abstract

As a significant developing nation in Southeast Asia with a vast population,
Indonesia's economic stability is paramount to public welfare. However, the
acceleration of globalization and technological advancements has intensified
market competition, often leading to unfair business practices. Objective: This legal
study examines the implementation and effectiveness of Law Number 5 of 1999
concerning the Prohibition of Monopolistic Practices and Unfair Business
Competition. Specifically, it seeks to delineate various forms of monopolies,
distinguishing between those that are detrimental to the public and those that may
contribute positively to national welfare (legal monopolies). Method: This research
employs a normative legal method with a statutory and conceptual approach.
Results: The findings indicate that the implementation of Law No. 5 of 1999
requires further strengthening through regulatory updates and more rigorous law
enforcement to preemptively address complex monopolistic trends. Furthermore,
the effectiveness of the law is heavily dependent on enhanced inter-institutional
coordination. Improving the supervisory climate is essential to ensuring legal
certainty and maintaining a healthy, competitive business environment in
Indonesia.
Keywords: Legal Certainty, Monopolistic Practices, Unfair Business
Competition, Law Enforcement, Indonesia.