Market Dominance and Law Enforcement under Indonesian Competition Law: An Analysis of Law No. 5 of 1999

Abdul Kamid; Dadi Susilo; Kristanto Kristanto; Lukman Matnudin; Anto Kustanto

doi:10.58829/lp.12.2.2025.340

Authors

Abdul Kamid Universitas Wahid Hasyim, Semarang, Indonesia
Dadi Susilo Universitas Wahid Hasyim, Semarang, Indonesia
Kristanto Kristanto Universitas Wahid Hasyim, Semarang, Indonesia
Lukman Matnudin Universitas Wahid Hasyim, Semarang, Indonesia
Anto Kustanto Universitas Wahid Hasyim, Semarang, Indonesia

DOI:

https://doi.org/10.58829/lp.12.2.2025.340

Keywords:

Competition Law, KPPU, Law Enforcement, Market Dominance, Monopolistic Practices

Abstract

Indonesian competition law plays a vital role in preventing monopolistic practices and ensuring fair competition. Yet, the rise of the digital economy, shifting market structures, and persistent enforcement challenges have complicated regulation of market dominance. This study analyzes the main provisions of Law Number 5 of 1999, examines the concept of market dominance, and evaluates enforcement mechanisms. Using a normative legal research method with statute, conceptual, and doctrinal approaches, data were collected from legislation, KPPU regulations, and academic literature. Findings show that Indonesian competition law applies a rule of reason, targeting abuse of dominant positions rather than dominance itself. Market dominance is assessed through indicators such as market share, control of essential facilities, barriers to entry, exclusionary conduct, and independence from competitive pressures. KPPU plays a central role despite institutional and evidentiary limitations. This research contributes to competition law scholarship and offers concise policy recommendations to strengthen enforcement in the digital era.

References

Achmad, Buchori. “Influence of educational games on childrens intelligence.” International Journal of Advanced Science and Technology 29, no. 4 (2020): 1646-1652.

Andrés‐Cerezo, David, and Natalia Fabra. “Storing power: Market structure matters.” The RAND Journal of Economics 54, no. 1 (2023): 3-53. https://doi.org/10.1111/1756-2171.12429

Anggraini, Anna Maria Tri, Ahmad Sabirin, and Farhandi Himawan. “Antitrust in Practice: Case-Based Comparative Analysis of Predatory Pricing Enforcement in Indonesia and the United States.” Padjadjaran Jurnal Ilmu Hukum (Journal of Law) 12, no. 3 (2025a): 1-28.

Anggraini, Anna Maria Tri, Ahmad Sabirin, Venty EM Simanullang, Berto Mulia Wibawa, and Gisca Nurannisa. “The Doctrine of Essential Facilities in Competition Law: Balancing Monopoly Power and Fair Competition.” Jurnal Hukum Bisnis Bonum Commune 8, no. 2 (2025b): 382-415. https://doi.org/10.30996/jhbbc.v8i2.13028

Anisah, Siti, and Dodik Setiawan Nur Heriyanto. “Aligning Indonesia’s Energy-Market Competition Law with the Sustainable Development Goals: Pathways to a Just Energy Transition.” Prophetic Law Review 4, no. 2 (2025): 284-315. https://doi.org/10.20885/plr.vol7.iss2.art6

Anisah, Siti, and Sahid Hadi. “The human right to a fair trial in competition law enforcement procedures: A rising issue in indonesian experiences.” Laws 12, no. 3 (2023): 41-69. https://doi.org/10.3390/laws12030055

Apriani, Desi, and Syafrinaldi Syafrinaldi. “Konflik Norma Antara Perlindungan Usaha Kecil Menurut Hukum Persaingan Usaha Indonesia Dengan Perlindungan Konsumen.” Jurnal Pembangunan Hukum Indonesia 4, no. 1 (2022): 14-33. https://doi.org/10.14710/jphi.v4i1.14-33

Asil, Umut Can. “Unveiling Dominance: Abusive Practices in Digital Markets-An Analysis of the Market Platforms’ Dominant Position and the EU’s Regulatory Countermeasures.” (2023).

Beneke, Francisco, and Shazana Eliza Rohr. “Transnational competition law rules: a political economy perspective.” Cambridge International Law Journal 14, no. 1 (2025): 84-102. https://doi.org/10.4337/cilj.2025.01.05

Bhattacharya, Abhi, Neil A. Morgan, and Lopo L. Rego. “Examining why and when market share drives firm profit.” Journal of Marketing 86, no. 4 (2022): 73-94. https://doi.org/10.1177/00222429211031922

Bostoen, Friso. “The General Court’s Google Shopping Judgment Finetuning the Legal Qualifications and Tests for Platform Abuse.” Journal of European Competition Law & Practice 13, no. 2 (2022): 75-86. https://doi.org/10.1093/jeclap/lpac010

Burns, Ronald G., Michael J. Lynch, and Katelyn Smith. “Sanctioning corporate crime: Fines received by the 50 top revenue generating companies in the US: Sanctioning corporate crime: Fines received by the 50 top revenue generating companies in the US: RG Burns et al.” Crime, Law & Social Change 82, no. 5 (2024): 1124-1147. https://doi.org/10.1007/s10611-024-10170-w

Cennamo, Carmelo. “Competing in digital markets: A platform-based perspective.” Academy of Management Perspectives 35, no. 2 (2021): 265-291. https://doi.org/10.5465/amp.2016.0048

Christiani, Theresia Anita. “Normative and empirical research methods: Their usefulness and relevance in the study of law as an object.” Procedia-Social and Behavioral Sciences 219, no. 3 (2016): 201-207. https://doi.org/10.1016/j.sbspro.2016.05.006

De la Torre, Fernando Castillo. “Evidence, proof and judicial review in cartel cases.” World Competition 32, no. 4 (2009): 267-284. https://doi.org/10.54648/woco2009052

De Loecker, Jan, Jan Eeckhout, and Simon Mongey. Quantifying market power and business dynamism in the macroeconomy. No. w28761. National Bureau of Economic Research, 2021. https://doi.org/10.3386/w28761

Dewi, Elreddian Kusuma, Zahry Vandawati Chumaida, and Sinar Aju Wulandari. “Characteristics of Indirect Evidence Towards Price Fixing Agreements in The Perspective of Competition Law.” Policy, Law, Notary and Regulatory Issues (POLRI) 3, no. 1 (2024): 139-155. https://doi.org/10.55047/polri.v3i1.975

Diab, Ashadi L., Andi Yaqub, Lian Mulyani Muthalib, and A. Zamakhsyari Baharuddin. “Safeguarding Consumers: The Role of Industry and Trade Office in Countering Monopolistic Practices and Ensuring Business Protection.” Volksgeist: Jurnal Ilmu Hukurn dan Konstitusi 6, no. 2 (2023): 152-181. https://doi.org/10.24090/volksgeist.v6i2.9065

Disemadi, Hari Sutra, and Kholis Roisah. “The enforcement of business competition law by the police: An Indonesian experience.” Lentera Hukum 6, no. 2 (2019): 192-218. https://doi.org/10.19184/ejlh.v6i2.12013

Fikri, Ahmad Lutfi Rijalul. “Qawaid al-Fiqhiyyah Analysis on the Prohibition of Monopoly Practices and Unfair Business Competition: A Critical Review.” Justicia Islamica 18, no. 1 (2021): 132-148. https://doi.org/10.21154/justicia.v18i1.2466

Fitriana, Diana. “Reconstruction of Competition Law: Preventing Monopolization Through Data Exploitation in E-Commerce.” Indonesia Law Review 14, no. 4 (2025): 1-27. https://doi.org/10.15742/ilrev.v14n4.2

Gawer, Annabelle. “Digital platforms and ecosystems: remarks on the dominant organizational forms of the digital age.” Innovation 24, no. 1 (2022): 110-124. https://doi.org/10.1080/14479338.2021.1965888

Hadi, Akhsan, and Paulus Aluk Fadjar Dwi Santo. “Natural Monopoly or Monopoly by Law for State Owned Enterprises.” In E3S Web of Conferences, vol. 426, p. 02085. EDP Sciences, 2023. https://doi.org/10.1051/e3sconf/202342602085

Harahap, Nurasiah. “Authority of The Business Competition Supervisory Commission (KPPU) Medan Regional Office in Completing Prohibited Activities.” ARBITER: Jurnal Ilmiah Magister Hukum 6, no. 1 (2024): 194-201. https://doi.org/10.31289/arbiter.v6i1.4106

Hartini, Rahayu, Muhammad Arief, and Adi Permana. “Implementation of business competition compliance program to prevent unfair business competition practices against business enterprises.” Audito Comparative Law Journal (ACLJ) 5, no. 1 (2024): 42-55. https://doi.org/10.22219/aclj.v5i1.29780

Israhadi, Evita Isretno. “Social distrust impact analysis: Political overview competition law.” International Journal of Criminology and Sociology 9, no. 2 (2021): 2413-2420. https://doi.org/10.6000/1929-4409.2020.09.292

Kagramanto, Lucianus Budi, and Teddy Prima Anggriawan. “Legal Strategy for Exposing Covert Cartel Agreements Through Indirect Evidence and Leniency Programs.” Yuridika 40, no. 3 (2025): 321-345. https://doi.org/10.20473/ydk.v40i3.67024

Kennedy, Alexander, A. Liuman, Natallia Lai, and S. Muljo. “Antitrust law analysis on the abuse of dominant position in franchise agreements in Indonesia.” Journal of Legal and Cultural Analytics 4, no. 3 (2025): 583-602. https://doi.org/10.55927/jlca.v4i1.13464

Komisi Pengawas Persaingan Usaha (KPPU). Outlook Persaingan Usaha 2025. Jakarta: Komisi Pengawas Persaingan Usaha, 2025.

Krisch, Nico. “Jurisdiction unbound:(extra) territorial regulation as global governance.” European Journal of International Law 33, no. 2 (2022): 481-514. https://doi.org/10.1093/ejil/chac028

Littlechild, Stephen. “Regulation and the nature of competition.” Journal of Air Transport Management 67, no. 5 (2018): 211-223. https://doi.org/10.1016/j.jairtraman.2017.03.003

Mason, Ruth, and Michael S. Knoll. “Bounded Extraterritoriality.” Michigan Law Review 122, no. 8 (2024): 1623-1686. https://doi.org/10.36644/mlr.122.8.bounded

Moss, Diana L., Gregory T. Gundlach, and Riley T. Krotz. “Market power and digital business ecosystems: Assessing the impact of economic and business complexity on competition analysis and remedies.” Available at SSRN 3864481 (2021). http://dx.doi.org/10.2139/ssrn.3864481

Ong, Burton, and Ding Jun Toh. “Digital dominance and social media platforms: are competition authorities up to the task?.” IIC-International Review of Intellectual Property and Competition Law 54, no. 4 (2023): 527-572. https://doi.org/10.1007/s40319-023-01302-1

Pierce Jr, Richard J. “Small is not beautiful: the case against special regulatory treatment of small firms.” Administrative Law Review 21, no. 4 (1998): 537-578.

Prananingtyas, Paramita, Hari Sutra Disemadi, and Ninik Zakiyah. “The Indonesian Business Competition Law: How the Police Plays a Role.” Jurnal Hukum Novelty 11, no. 1 (2020): 105-113. https://doi.org/10.26555/novelty.v11i1.a15224

Ramadhan, Haiqal Riski, Darminto Hartono Paulus, and Giovanni Marcello. “Prohibition of monopolistic practices in business trials in Indonesia: Reforming on business competition supervisory commission.” Journal of Law and Legal Reform 4, no. 2 (2023): 163-182. https://doi.org/10.15294/jllr.v4i2.61043

Reza, Mohammad, Muhammad Hawin, and Ningrum Natasya Sirait. “Business Competition Compliance Program as an Effort to Build A Culture of Obeying the Law.” Corporate Law & Governance Review 7, no. 3 (2025): 24-51. https://doi.org/10.22495/clgrv7i3p3

Rohman, Adi Nur, Palmawati Tahir, and Dwi Andayani Budisetyowati. “A Review of Predatory Pricing Regulations in Digital Business in Indonesia: Islamic Law Approach.” Malaysian Journal of Syariah and Law 13, no. 3 (2025): 732-742. https://doi.org/10.33102/mjsl.vol13no3.669

Rumadan, Ismail. “Creating an appropriate legal procedure in handling unfair competition under Indonesian job creation regime.” International Journal of Public Law and Policy 11, no. 2 (2025): 145-160. https://doi.org/10.1504/IJPLAP.2025.145282

Santoso, Budi Joyo, and Adnan Hamid. “Constitutional Legitimacy, Limitations, and Strengthening of State-Owned Enterprise Monopoly Supervision in Economic Development and Protection of Healthy Business Competition in Indonesia.” Journal of Law, Politic and Humanities 6, no. 1 (2025): 587-599. https://doi.org/10.38035/jlph.v6i1.2554

Sapitri, Baiq Ervinna. “Kewenangan Komisi Pengawas Persaingan Usaha (KPPU) dalam penanganan perkara persaingan usaha (studi perbandingan di Indonesia dengan negara-negara common law system).” Jurnal IUS Kajian Hukum dan Keadilan 3, no. 1 (2015): 261-188. https://doi.org/10.12345/ius.v3i7.204

Schmalz, Martin C. “Recent studies on common ownership, firm behavior, and market outcomes.” The Antitrust Bulletin 66, no. 1 (2021): 12-38. https://doi.org/10.1177/0003603x20985804

Setianingrum, Reni Budi, and Muhammad Annas. “E-commerce platform market share measurement mechanisms in Indonesian competition law: The urgency in digital era.” Jurnal Hukum Novelty (1412-6834) 17, no. 1 (2026): 78-102.

Setiawan, Maman, Rina Indiastuti, and Nury Effendi. “The relationship between business competition and welfare in Indonesia.” Plos one 20, no. 1 (2025): e0308856- e0308889. https://doi.org/10.1371/journal.pone.0308877

Setiyono, Joko, and Eddy Pratomo. “Breaking Boundaries: How Indonesia’s Limited Territorial Jurisdiction Sparked a Global Movement to Solve Extradition Woes.” Via Inveniendi Et Iudicandi 18, no. 2 (2023): 72-94. https://doi.org/10.15332/19090528.9731

Silalahi, Udin. “Tender conspiracy under kppu decision and prohibition of monopolistic practices act.” Sriwijaya Law Review 15, no. 1 (2020): 372-397. https://doi.org/10.28946/slrev.vol4.iss2.347.pp91-108

Simbolon, Alum. “Prevention of monopolistic practices and unfair Business Competition through business Competition Supervision.” J. Legal Ethical & Regul. Isses 22, no. 4 (2019): 1-16.

Simmons, Kami Chavis. “The politics of policing: Ensuring stakeholder collaboration in the federal reform of local law enforcement agencies.” The Journal of Criminal Law and Criminology 41, no. 2 (2008): 489-546.

Steinbaum, Marshall, and Maurice E. Stucke. “The effective competition standard.” The University of Chicago Law Review 87, no. 2 (2020): 595-623.

Stephan, Andreas. “Four key challenges to the successful criminalization of cartel laws.” Journal of Antitrust Enforcement 2, no. 2 (2014): 333-362. https://doi.org/10.1093/jaenfo/jnu004

Sugarda, Paripurna, and Muhammad Rifky Wicaksono. “Power to the people: Enhancing competition law enforcement in Indonesia through private enforcement.” Asia Pacific Law Review 26, no. 2 (2018): 127-146. https://doi.org/10.1080/10192557.2019.1567054

Sukarmi, Sukarmi, Hassan Qaqaya, Fransiska A. Susanto, and Rika Kurniaty. “The Qualified Effects Doctrine in the Extraterritorial of Competition Law Application: An Indonesia Perspective.” Sriwijaya Law Review 28, no. 3 (2021): 192-204. https://doi.org/10.28946/slrev.Vol5.Iss2.1050.pp192-204

Syahputra, Rendy Dwi, Rosalinda Elsina Latumahina, and Amrit Kumar Shrestha. “Legal Analysis of Shopee’s Monopoly Practices concerning Business Competition in Indonesia.” Jurnal Hukum Bisnis Bonum Commune 17, no. 1 (2025): 95-107. https://doi.org/10.30996/jhbbc.v8i1.12172

Ulfanora, Ulfanora, and Almaududi Almaududi. “West Sumatra’s Retail Policies on The Perspective of Competition and Islamic Law.” Diponegoro Law Review 9, no. 2 (2024): 241-257. https://doi.org/10.14710/dilrev.9.2.2024.241-257

Wahyuningtyas, Sih Yuliana. “Challenges in Combating Cartels, 14 Years After the Enactment of Indonesian Competition Law.” Yearbook of Antitrust and Regulatory Studies (YARS) 7, no. 10 (2014): 279-306. http://dx.doi.org/10.2139/ssrn.2741622

Wicaksono, Muhammad Rifky, Kusuma Raditya, Laurensia Andrini, Muhammad Hawin, and Paripurna Sugarda. “Implementing the Extraterritoriality Principle to Strengthen Competition Law Enforcement in Indonesia in the AEC Era: A Comparative Study.” Indon. L. Rev. 9, no. 6 (2019): 20-38. https://doi.org/10.15742/ilrev.v1n9.498

Wood, Benjamin, Owain Williams, Phil Baker, Vijaya Nagarajan, and Gary Sacks. “The influence of corporate market power on health: exploring the structure-conduct-performance model from a public health perspective.” Globalization and Health 17, no. 1 (2021): 35-56. https://doi.org/10.1186/s12992-021-00688-2

Wulandari, Putri. “Normative Legal Research Methodology from the Experts’ Perspective: A Comparative Analysis of Concepts and Approaches.” Archipel: Journal of Indonesian Interdisciplinary Studies 1, no. 6 (2026): 12-25. https://doi.org/10.65739/archipel.v1i6.34

Yasin, Noer. “The Authority Rationalization Philosophy of the Indonesia Competition Commission: The Due Process of Law and Maqashid Sharia Perspectives.” Jurisdictie: Jurnal Hukum Dan Syariah 13, no. 1 (2022): 112-129. https://doi.org/10.18860/j.v13i1.15873