IMPLEMENTING THE EXTRATERRITORIALITY PRINCIPLE TO STRENGTHEN COMPETITION LAW ENFORCEMENT IN INDONESIA IN THE AEC ERA: A COMPARATIVE STUDY

Abstract

The regional economic integration that ensues from the ASEAN Economy Community will not only provide its members with boundless opportunities for economic growth, but also with unprecedented challenges. The demands of a more interconnected regional economy will requirethe Indonesian government, as guardians of the competitive process in the Indonesian market, to protect it from anticompetitive conduct occurring both within and outside of its borders. However, there is a major gap since Indonesia's current competition law does not provide the KPPU with the jurisdiction to investigate, prosecute, or punish violations committed by business actors located outside of Indonesia's territory. Thus, this paper examines the implementation o f the extraterritoriality principle to enable the KPPU and Indonesian courts to exercise jurisdiction over foreign business actors who violate Indonesia's competition law from abroad. This paper employs a comparative approach to analyze the development of the extraterritoriality principle in the US's, EU's, Singapore's, and Malaysia's competition laws. This article concludes by determining how the extraterritoriality principle should be implemented to strengthen Indonesia's competition law enforcement.