A Comparison of Business Competition Law Regulations between Indonesia and Majapahit
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Keywords:
Unfair Business Competition; Majapahit Kingdom; Business Competition Supervisory Commission; Law Enforcement.Abstract
The enforcement of business competition law in Indonesia, as regulated under Law Number 5 of 1999 concerning the Prohibition of Monopolistic Practices and Unfair Business Competition (Law No. 5 of 1999), continues to face various challenges in its implementation. On the other hand, historical records show that the Majapahit Kingdom possessed an economic and legal enforcement system known for its firmness and effectiveness. This study aims to compare the business competition legal framework in force in Indonesia with the business competition legal system that existed during the Majapahit Kingdom, in order to identify values relevant to strengthening the national business competition legal framework. This research employs a normative legal method with comparative and conceptual approaches. The results show that business competition law enforcement in Indonesia is carried out independently by the Business Competition Supervisory Commission (KPPU) based on Law No. 5 of 1999, whereas during the Majapahit era, law enforcement was carried out directly and in a centralized manner by the King through the Kutaramanawadharmasastra code, as further reflected in the Nagarakretagama, which contains the King's direct decrees concerning economic regulation. This comparison indicates that the firmness and certainty of sanction enforcement within the Majapahit system stemming directly from the highest authority without layered bureaucracy constituted a key strength not optimally possessed by Indonesia's modern business competition law enforcement system. These values can serve as a reference for strengthening the authority and effectiveness of law enforcement by the KPPU in the future.
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