According to the antitrust agency, limited resources are already restricting its ability to enforce competition law effectively.
Indonesia’s plan to cut funding for its antitrust watchdog, the KPPU, by 35.1% in 2026 has sparked concern among legal experts and observers, who see the move as a sign that competition law enforcement is not a government priority. The cut reduces the KPPU’s budget to 68.3 billion rupiah ($4.19 million), placing it among the five lowest-funded agencies in the country.
Legal practitioners warn that weakening the KPPU could undermine Indonesia’s long-term economic goals, including the “Indonesia Emas 2045” vision. Lawyer Asep Ridwan stressed that enforcement of competition law is essential for innovation, efficiency, and fair business practices, and said the funding reduction contradicts national development ambitions.
Nixon Sipahutar of Gracia Law Firm said the KPPU faces increasing challenges in tackling monopolistic practices, citing dominance in sectors like construction and ride-hailing. He called for the government to strengthen, not weaken, the regulator, warning that competition oversight is critical in ensuring fair opportunities for private businesses.
The KPPU expressed hope that the cuts are temporary, noting that limited resources are already restricting its ability to enforce competition law effectively. Spokesperson Deswin Nur emphasized that prevention, investigation, and public education efforts have been curtailed, and that future capacity will depend on whether financial support is restored.
Despite the budget concerns, support for the KPPU remains strong among civil society and lawmakers. Leading Islamic organization Muhammadiyah backed proposed amendments to strengthen the competition law, with its leaders calling for a responsive regulatory framework that protects small businesses and ensures fair market conditions.
Source: MLex
