On 2 October 2019, the Indonesian Competition Commission (“KPPU”) issued Regulation No. 3 of 2019 on Evaluation of Company Mergers, Consolidations or Share Acquisitions that May Result in Monopolistic Practices and/or Unfair Business Competition (“Regulation 3”). While Regulation 3 came into effect on 3 October, it only became public on 14 October.
Regulation 3 sets out the merger filings that must be submitted to the KPPU for mergers and acquisitions in Indonesia. It replaces the previous KPPU regulation on the same topic (as lastly amended by KPPU Regulation No. 2 of 2013). Under the previous regulation, mergers and consolidations of business entities as well as acquisitions of shares of another company (causing a change of control) that resulted in the asset value and/or sales value of the combined entity exceeding certain specified amounts had to be notified to the KPPU through a post-merger filing within 30 business days after the transaction became legally effective (i.e. completion).
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