PAPER OF FINAL EXAM

BUSINESS ETHICS, LAW & SUSTAINABILITY

MM5001

MONOPOLISTIC PRACTICES AND UNFAIR BUSINESS

COMPETITION AT INDIHOME TELKOM

Created By :
Fauzia Muftiati
29116376

MASTER OF BUSINESS ADMINISTRATION

SCHOOL OF BUSINESS AND MANAGEMENT
INSTITUT TEKNOLOGI BANDUNG
2017
 CHAPTER I
BACKGROUND

Communication is a very important thing in the community since in the past because
communication is a process whereby a person or several people create and use information to
connect with other environments. Communication is also important in the establishment of a
relationship between people, communication is also important in the formation of a person's
character and personality, because by communicating people can form the experience so that
humans can develop. In addition, all communication is also important for human psychological
health. Communication is divided into two such as verbal communication and non verbal
communication. Verbal communication is communication delivered through written or oral.
Non-verbal communication is communication delivered through sign language, expressions of
face, symbol, color and tone of voice.
There are different types of communication that people often use, direct communication,
indirect communication, and communication using technology services. For example in direct
communication, everybody can talk with each other in the same place or people can talk face
to face with each others, indirect communication usually use for people who wants to talk with
other people but not in the same place or not face to face such as use letter for communication
with each other, and for commnication using technology services same with indirect
communication but in communication using technology people can use technology for
communication with others such as use e-mail, mobile phone, or social media. The more
sophisticated technology can affect the development of communication in the world. With
communication, everyone can easily interact. There are several examples of communication
using technology, such as using home phones, mobile phones and using the internet. So,
communication is a process to delivering information from a person to another person.
The technology used for communication is internet. The definition of the internet is a
large network that interconnected network of computer networks that connect people and
computers around the world, via telephone, satellite and other communication systems. In the
past, only a few people access the internet. Most of them communicate using home or mobile
phones and few people access the internet. Usually people access the internet in the office or
in warung internet (warnet). Internet in Indonesia is very familiar in some societies and is
needed by the society of young people, teenagers and adults. Because with the internet, people
can find out more in-depth information. In addition to communicating, many people use the
internet to search for information.
Before in this digital era, most of them sought information through newspapers or
inquired directly to people who better understand. Therefore, before the era of digital this
society still difficult to find information because of its little source. But now in this digital era,
people can easily find the information they need. This information can be searched through the
internet. Besides being a tools for communicating and looking for information that is easy,
cheap, and fast, the other advantage of internet is the internet can be a promotion media and
for business.
Along with the development of the era, internet usage in Indonesia is increasing every
year. In 2017 the internet speed in Indonesia is still ranked 81st with the speed is 4.72 Mbps.
However, Indonesa is still superior compared to India, Nigeria, Pakistan, Sri Lanka, Venezuela,
Filipina, dan Kosta Rika. While the first rank country that has the average speed of mobile
internet fastest in the world is South Korea with internet speed reached 37.5 Mbps. Although
Indonesia's internet speed is ranked 81, in 2017 Indonesia is ranked the 6th largest in the world
in terms of the number of internet users, eMarketer estimates netter Indonesia will reach 112
million people.
With many people as internet user in Indonesia, many company whih provide internet
service. For instance of internet services provided are internet services from a mobile phone
provider or internet service commonly used in home, office, or cafe that usually called as wifi.
There are several types of tools that provide wifi such as modem and router. Both of types are
different in terms of design and specification. Design router tend bigger than modems. Usually
this router is used in office, home or cafe. While the modem design is smaller than the router,
so the modem can be easily for carried and look more simple.
Various companies that provide internet service one of them is PT. Telekomunikasi
Indonesia, Tbk (Telkom). PT. Telekomunikasi Indonesia, Tbk (Telkom) has several services
such as: telephone service, internet service (Speedy), and service for mobile (Telkomsel).
Before release Speedy, PT. Telekomunikasi Indonesia, Tbk (Telkom) provides internet service
called Telkom Net Instan. This service is different from Speedy, Telkom Net Instan is internet
service with connection of internet access dial - number while Speedy use telephone line which
can be used to call at the same time by access internet. This service is based on Asymmetric
Digital Subscriber Line (ADSL) access technology and Gigabit Passive Optical Network.
In early 2015, PT. Telekomunikasi Indonesia, Tbk (Telkom) release a new product which
provides internet service is Indonesia Digital Home or commonly called Telkom IndiHome.
IndiHome has triple play program from PT. Telekomunikasi Indonesia, Tbk (Telkom) which
involve internet (internet on fiber or high speed internet), home phone (voice), and Interactive
TV (UseeTV Cable, IP TV). Because of that offer, PT. Telekomunikasi Indonesia, Tbk
(Telkom) give IndiHome label as three services in one package (3-in-1) because in addition to
the internet, customers also get cable TV shows and home phone lines. Consumers who want
to use IndiHome are required to use the triple play program. Consumers can not choose if they
only want to use one of the products offered. Because of that case, Komisi Pengawas
Persaingan Usaha (KPPU) suspected monopolistic practices by PT Telekomunikasi Indonesia,
Tbk (Telkom) related to IndiHome Triple Play service.
 CHAPTER II
DISCUSSION

2.1 THEORY OF LAW

Law as it exist in the modern community may be conveniently, although perhaps not
comprehensively, defined as the sum total of all those rules of conduct for which there is a state
sanction (from David S.Shrager & Elizabeth Frost, The Quotable Lawyer, Facts on File
Publications, 1986, p.174).
Laws is the entire rules of conduct that apply to a common life that can be enforced by a
sanction. The law set the legal relationship that consists of the bonds between individuals and
society and between individuals themselves. This bond is reflected in rights and obligations.
The law is addressed to humans as social beings who live in societies with social ties.
The purpose of the law is to create an orderly society so that human interests will be protected
and to achieve its objectives. The law has the duty to divide the rights and obligations between
individuals within the community, to divide authority and to regulate the law and to maintain
legal certainty.
Law is the most important aspect of the implementation of a series of institutional
powers. The law has a duty to ensure legal certainty in society. Therefore, each community is
entitled to a defense before the law so that it can be interpreted that the law is a written or
unwritten rule that regulate the life of the community and provides sanctions for its offender.
Laws are made in the two key ways: by parliament enacting acts of parliament or statutes,
and by the courts. The law in general can be divided into two, namely Public Law and Private
Law. Criminal Law is a public law, meaning that the Criminal Law regulates the relationship
between individuals and society and is applied only when society really needs it.
Van Hamel states that the hukum pidana has evolved into Public Law, where its
implementation is entirely within the hands of the state, with few exceptions. The exceptions
are against complaints (klacht-delicht). That requires a complaint (klacht) in advance of the
disadvantaged party so that the state can apply it.
The Criminal Law at the present moment sees the special interests of individuals as not
the main problem, in other words the Criminal Law is the public interest. The relationship
between the suspect and the victim is not the relationship between the aggrieved and the
disadvantaged as in the Civil Law, but the relationship is between the person guilty of the
Government in charge of securing the public interest or the public interest as characteristic of
the Public Law.

2.2 LAW IN BUSINESS PERSPECTIVES

In economic perspectives, business is an organizational entity involved in the provision
of goods and services to consumers. Businesses aim to maximize sales to have their income
exceed their expenditures, resulting in a profit, gain or surplus. Business consists of various
types in every country. There are several types of business in Indonesia, such as sole
proprietorship, partnership, corporation, cooperative, and franchises. Businesses consist of a
variety of types, and, as a result, businesses can be grouped in different ways. One of the many
ways that can be used is to classify the business based on the activities it does in making a
profit. For instance is manufacture business, services business, agriculture business,
distributors, financial services business, transportation business, etc.

2.2.1 Definition of Business Law

Business Law is a set of rules of law governing the procedures for the execution of
business affairs or activities of trade, industry or finance connected with the production or
exchange of goods or services by placing money from entrepreneurs in certain risks by certain
businesses with the motives is to gain certain benefits. The scope of business law includes:
business contracts, buying and selling, corporate forms, public and capital markets, foreign
investment, bankruptcy and liquidation, mergers, acquisitions, consolidation and segregation
of firms, lending and financing, debt guarantees, securities, labor, intellectual property rights,
anti-monopoly, consumer protection, agency and distribution, insurance, taxation, business
dispute resolution, international business, transport law.
Here is some understanding of business law, according to experts, among others:
1. According to Munir Fuady: Business law is a set of rules or rules of law including
enforcement efforts that regulate the procedures for the conduct of business affairs
or trade, industry or finance activities connected with the production or exchange of
goods or services by placing money from entrepreneurs in certain risks by certain
business With a motive for profit.
2. According to Abdul R. Saliman, et al: Business Law or Bestuur Rechts is the whole
of the written, or unwritten rules of the law, which regulates the rights and
obligations arising from the agreements and the engagements that occur within
business practices.
 3. According to Dr. Johannes Ibrahim, SH, M.Hum: Business law is a set of legal rules
that are held to regulate and resolve the various issues that arise in human activities,
especially in the field of trade.
The legal rules of business are needed because:
1. The parties involved in the business dealings require something more than just
promise and good will.
2. There is a need to create legal measures that can be used if one of the parties does
not fulfill the obligation and does not fulfill the promise.

2.2.2 Function of Business Law

Basically the law is made to create life in a society that is safe, orderly and peaceful, nor
with business law. The function of business law:
1. As a useful source of information for business practitioners,
2. To understand the rights and obligations in business practice,
3. In order to manifest the nature and behavior of business activities in fair, fair, healthy
and dynamic (guaranteed by legal certainty).

2.2.3 Business Law Sources

The source of this law serve as the legal basis for the enactment of the law used in running
a business. The main source of business law or principal (1338 paragraph 1 KUHPerdata) is:
1. The principle of the contract or the agreement becomes the main legal source, in
which each party is bound to submit to the agreed contract.
2. The principle of freedom of contract, in which the parties are free to make and
determine the contents of the contract to which they have agreed.
In general, according to sources of business law legislation, are:
1. Hukum Perdata (KUHPerdata)
2. Hukum Dagang (KUHDagang)
3. Hukum Publik (pidana Ekonomi/KUHPidana)
4. Peraturan Perundang-undangan diluar KUHPerdata, KUHPidana,
KUHDagang
2.3 PROHIBITED ACTIVITIES IN COMPETITIVE LAW
The government prohibits activities that cause unfair business competition. Unfair
business competition includes:
1. Monopoly
Market situation where one producer (or a group of producers) controls supply of
a good or service, and where the entry of new producers is prevented or highly
restricted.
2. Monopsony
A monopsony occurs when a firm has market power in employing factors of
production or market structure in which only one buyer interacts with many
would-be sellers of a particular product. It means there is one buyer and many
sellers.
3. Market Control
Market control is an attempt to achieve specified economic or political goals
through the deliberate manipulation of factors such as supply, demand, pricing,
transportation, or taxation.
4. Conspiracy
a. Conspiracy activities in order to win a business competition with wrong
way, in the form of:
b. Conspiracy to win the tender;
c. Conspiracy stealing the secrets of rival companies;
d. Conspiracy destroys rival product quality or image of the rival.

2.4 MONOPOLY
Monopoly is the market that occurs when the entire supply of a kind of goods on the
market is controlled by a seller or a certain seller. A monopoly is a structure in which a single
supplier produces and sells a given product. If there is a single seller in a certain market and
there are no close substitutes for the product, then the market structure is that of a pure
monopoly. Sometimes, there are many sellers in an industry or there exist many close
substitutes for the goods being produced, but nevertheless companies retain some market
power. This is termed monopolistic competition, whereas in oligopoly the companies interact
strategically.
 The monopoly market is formed due to several factors including:
1. Resources owned by a monopolist have unique characteristics and uniqueness
that can not be sought and owned by other companies.
2. Monopolists have a lot of funds, so they are able to enjoy economies of scale even
to the highest levels.
3. The monopolist gets protection from the government through the law so that
monopolistic practices can move freely.
These three factors are the factors that form the monopoly market. There are several types
of monopoly markets based on their causes, including:
1. Monopoly by Law
That is the monopoly by the state for the branches of production is important for
the state and affect the livelihood of many people.
2. Monopoly by Nature
That is a monopoly that was born and developed naturally because it supported
certain climate and environment.
3. Monopoly by Lisence
That is the monopoly that have permit the use of intellectual property rights.

2.5 THE LAW ON MONOPOLY

In regulation of the Republic of Indonesia Number 5 Year 1999 it is stated that during an
economic activity does not cause unfair business competition, it can not be said that there has
been a monopolistic practice which violates or contradicts this law, Although the monopoly
itself actually occurs (in the form of control of production, marketing of certain goods or
services). So, in fact monopoly is not prohibited, which is prohibited is the practice of
monopoly and unfair business competition.
From that explanation, it can be concluded that one of the main requirements of an
economic activity is said to be unhealthy is if the occurrence of real mastery of a relevant
market so that the price of goods or services traded no longer follow the economic laws of
demand and sales, but solely determined by one or more economic actors who dominate the
market.
2.6 PROBLEM OF PT. TELEKOMUNIKASI INDONESIA, TBK (TELKOM)
Every year internet users in Indonesia are increasing. With the rise of internet users, so
many companies are providing internet service. Internet services such as Indihome Telkom,
Myrepublic, Oxigen, MNC Play Media, Biznet, and First Media. Usually not only internet
services are provided, but there is also pay - cable television service and telephone service.
Examples such as First Media and Indihome Telkom. Both companies provide different
services. For First Media only provides internet service and pay - cable television while for
Indihome Telkom provides internet service, pay - cable television and fixed line telephone
service. Most of these companies only provide pay - cable television and internet only.
The number of companies that provide these services, making every company competing
to get customers. The company promotes in a unique way to attract customers' attention.
Usually the promotion is giving a discount or with promises given the company to customers.
Because of the many providers of this internet service, it allows customers to choose
which company and what products will be selected. Most customers choose a company that
can provide Internet services with a fast connection or choose a company that provides pay -
cable television services with a large selection of channels. Customers are also free to choose
any company and product according to their wants.
In reality there are companies that require customers to install 3 services at one package.
Customers can not choose what services they want to use. The company is PT Telekomunikasi
Indonesia, Tbk (Telkom) with service called IndiHome Telkom. Komisi Pengawas Persaingan
Usaha (KPPU) suspects the monopoly and exclusive agreement conducted by PT
Telekomunikasi Indonesia, Tbk (Telkom).
The case originated from numerous complaints from customers regarding IndiHome
Tripple Play service. The complaint is related to Telkom who will revoke the telephone, if a
user stopped subscribe the IndiHome. Meanwhile, Telkom reasoned that the termination was
related to the difference of technology used to deliver the service. The company also promised
to fix the package.
Derived from the number of customer reports regarding the indication of fraud committed
by PT Telekomunikasi Indonesia, Tbk (Telkom), especially for IndiHome Telkom's products,
PT Telekomunikasi Indonesia, Tbk (Telkom) has violated Law no. 5 of 1999 concerning the
prohibition of monopolistic practices and unfair business competition with case number 10 /
PKPU-I / 2016.
2.7 CASE ANALYSIS
Internet users in Indonesia are increasing every year to make internet service providers
competing to attract customers. Internet service providers will do the best to satisfy customers'
desires and get the most profit. In order for a company to compete with other companies, the
company must conduct a different promotion with other companies.
It is also the reason for PT Telekomunikasi Indonesia, Tbk (Telkom) to release IndiHome
Telkom under its service name which is often called IndiHome Triple Play service. The service
provides internet service, pay - cable television and fixed line or telephone service in one
package. With IndiHome Triple Play service, PT Telekomunikasi Indonesia, Tbk (Telkom)
allegedly committed fraud in the form of market monopoly practices and closed agreements by
Komisi Pengawas Persaingan Usaha (KPPU) based on the number of reports from its
customers.
Allegations addressed to PT Telekomunikasi Indonesia, Tbk (Telkom) related monopoly
cases IndiHome services include: first, the existence of a closed agreement in the form of
practice tying in. That is, consumers are obliged to buy IndiHome products unilaterally without
being avoided by the buyer because there is no choice from other sellers, so the seller will have
a high bargaining position and make the agreement one-sided.
Secondly, the existence of monopolistic practice. Consumers are required to use three
services at once and can not be partially done. It has the potential to eliminate opportunities for
competitors and close alternative options for consumers to choose based on their needs.
This allegation is also reinforced in talks with customer service through Telkom's 147
telephone service. In the conversation, consumers can not choose the telephone line installation
service only. Therefore, the service has been used as one package with internet and cable tv.
And also some customers complain about IndiHome Tripple Play service. The complaint is
related to Telkom who will revoke the landline, if a user stopped subscribe IndiHome.
Since the launch of IndiHome service on December 19, 2013, the number of customers
until May 2016 has reached 1.06 million. Nevertheless, there is already a complaint petition
from the public. In 2015 there are already 23,028 people signing the petition, but this
monopolistic practice still occurs until May 2016.
Based on the above, Telkom is suspected to have abused the dominant position.
Meanwhile, PT Telekomunikasi Indonesia, Tbk (Telkom) is listed as a telecommunication
company that controls fixed line market (PTSN) in Indonesia. Where now Telkom's market
share for fixed line reaches 99%. Given this strategy, Telkom has prevented new companies
from entering the market or hindering competitors.
 Eventually, Komisi Pengawas Persaingan Usaha (KPPU) concluded that there is
evidence enough to prove violations against PT Telekomunikasi Indonesia, Tbk (Telkom).
Article also imposed, namely Article 15 paragraph 2, Article 17 and Article 25 paragraph 1
letter a and c Law no. 5 of 1999 on Prohibition of Monopolistic Practices and Unfair Business
Competition. Based on the case, Komisi Pengawas Persaingan Usaha (KPPU) can impose
administrative sanctions. The form, may be an order to stop a contract or activity that is
prohibited. Nor administrative fine sanctions of at least Rp 1 billion and a maximum of Rp 25
billion.
Below is the content and explanation of Article 15 paragraph 2, Article 17 and Article 25
paragraph 1 letter a and c Law no. 5 of 1999 on Prohibition of Monopolistic Practices and
Unfair Business Competition.

Exclusive Agreement Article 15 paragraph 2

(2) Pelaku usaha dilarang membuat perjanjian dengan pihak lain yang memuat persyaratan
bahwa pihak yang menerima barang dan atau jasa tertentu harus bersedia membeli barang
dan atau jasa lain dari pelaku usaha pemasok.
Explanation:
Article 15, paragraph 2, explains the prohibition of exclusive agreements between
business actors and their customers. An exclusive agreement is an agreement between a
business actor as a buyer and a seller to enter into an exclusive agreement which may result in
blocking or impeding other business actors to enter into the same agreement. PT
Telekomunikasi Indonesia, Tbk (Telkom) is suspected of having exclusive agreement in the
form of tying in agreement. Tying in agreement is an agreement under the agreement, the seller
sells the product to the buyer by establishing the requirement that the buyer will buy another
product from the seller. The product desired by the buyer is a tying product and the product
that the seller is required to purchase by the buyer is called a tied product.
In the case of the obligation to buy this product unilaterally set unavoidably by the buyer
because there is no other seller's choice, the seller will have a high bargaining power / position
and make the agreement one-sided. The bargaining value of the seller will be high because the
seller has a large market power, but in terms of the positive is if the product has a better quality,
so it becomes the buyer's own desire to buy the product. A exclusive agreement strategy will
clearly disrupt the competition and will further harm the consumer. The form of barriers to
entry into the market and or the closure of access by certain business actors to other business
actors (competitors) occurs when business actors who practice closed agreements then create
vertical barriers, especially access to raw materials or distribution and marketing networks.

Monopoly Article 17
(1) Pelaku usaha dilarang melakukan penguasaan atas produksi dan atau pemasaran barang
dan atau jasa yang dapat mengakibatkan terjadinya praktek monopoli dan atau persaingan
usaha tidak sehat.
(2) Pelaku usaha patut diduga atau dianggap melakukan penguasaan atas produksi dan atau
pemasaran barang dan atau jasa sebagaimana dimaksud dalam ayat (1) apabila:
a. Barang dan atau jasa yang bersangkutan belum ada substitusinya; atau
b. Mengakibatkan pelaku usaha lain tidak dapat masuk ke dalam persaingan usaha barang
dan atau jasa yang sama; atau
c. Satu pelaku usaha atau satu kelompok pelaku usaha menguasai lebih dari 50% (lima puluh
persen) pangsa pasar satu jenis barang atau jasa tertentu.
Explanation:
Article 17 describes the monopolistic practices perpetrated by business actors on goods
or services provided to their customers. PT Telekomunikasi Indonesia, Tbk (Telkom) is alleged
to practice the monopoly because consumers are required to use three services at once and can
not be done partially. It has the potential to eliminate opportunities for competitors and close
alternative options for consumers to choose based on their needs.

Dominant Position Article 25 paragraph 1 letter a and c

(1) Pelaku usaha dilarang menggunakan posisi dominan baik secara langsung maupun tidak
langsung untuk:
a. Menetapkan syarat-syarat perdagangan dengan tujuan untuk mencegah dan atau
menghalangi konsumen memperoleh barang dan atau jasa yang bersaing, baik dari segi harga
maupun kualitas; atau
c. Menghambat pelaku usaha lain yang berpotensi menjadi pesaing untuk memasuki pasar
bersangkutan.
Explanation:
Article 25 paragraph 1 letter a and c explains the dominant position, in which the business
actor does not have a meaningful competitor in the relevant market in relation to the controlled
market share, or the business actor has the highest position among the competitors in the
relevant market in relation to the financial capacity or ability to access on the supply of sales
or demand for certain goods or services. Article 25 paragraph (1) of Law no. 5 of 1999 prohibits
business actors using dominant positions either directly or indirectly to:
1. Establish trade terms with the aim of preventing consumers from obtaining goods,
services or competing goods and services, including price or quality.
2. Limiting market and technology development.
3. Inhibit other potential business actors to become competitors to enter the relevant
market.
PT Telekomunikasi Indonesia, Tbk (Telkom) is alleged to have abused dominant
positions. So far, PT Telekomunikasi Indonesia Tbk (Telkom) is listed as a telecommunication
company that controls the largest fixed line (PTSN) market in Indonesia. Where now Telkom's
market share for fixed line reaches 99%. Given this strategy, Telkom has prevented new
companies from entering the market or hindering competitors.

Sanctions
Law no. 5 of 1999 also regulates the sanctions. There are three types of sanctions introduced
in this law, namely administrative, principal, and additional punishment. Komisi Pengawas
Persiangan Usaha (KPPU), whose institutions will be explained later, is only authorized to
impose administrative measures. While additional principal and criminal penalties are imposed
by other institutions, in this case the judiciary. Administrative actions are:
1. The stipulation of cancellation of the agreement;
2. Orders to stop vertical integration;
3. Orders to cease activities which are proven to cause monopolistic and anti-
competitive practices and / or harm the public;
4. Order to stop abuse of dominant position;
5. Determination of cancellation of merger / consolidation of business entities /
acquisition of shares;
6. Determination of compensation payments;
7. The imposition of a fine of Rp 1 billion until Rp 25 billion.
Even if it is only authorized to impose administrative sanctions, the KPPU's authority is
intersect to all articles in Law no. 5 of 1999. That is, all violations of Law no. 5 of 1999 may
be imposed administrative sanctions. The description is as follows:
 Principal Additio
Punishment Admi
nal
No Article Description nistrat
Punish
1 2 3 ive
ment
1 Art. 15 Exclusive
Yes Yes
Agreement - Yes -

2 Arts. 17 Monopoly
Yes - - Yes Yes

3 Arts. 25 Abuse of dominant

Yes - - Yes Yes
position
 CHAPTER III
CONCLUSION

From this case author can conclude that:

1. With so many Internet service providers to make customers free to choose the
company and what services will be used.
2. Abuse of dominant position by PT Telekomunikasi Indonesia, Tbk (Telkom) in the
policy imposed to its customers. It can be seen from this customer that it has stopped
subscribing to IndiHome Telkom Triple Play service. Because in the clause of the
agreement stipulated provisions if a person stops subscribing to one of the three
services (internet service, pay-cable television and fixed line or home phone service)
PT Telekomunikasi Indonesia, Tbk (Telkom) is suspected to stop all access to their
services to customers.
3. The allegations addressed to PT Telekomunikasi Indonesia, Tbk (Telkom) related to
IndiHome's monopoly service case are exclusive agreement in the form of tying
practice and monopoly practice.
4. PT Telekomunikasi Indonesia, Tbk (Telkom) is a telecommunication company
which controls the largest fixed line (PTSN) market in Indonesia. Where now
Telkom's market share for fixed line reaches 99%.
5. Komisi Pengawas Persaingan Usaha (KPPU) concluded that there is evidence
enough to prove the violation of PT Telekomunikasi Indonesia, Tbk (Telkom).
Article also imposed, namely Article 15 paragraph 2, Article 17 and Article 25
paragraph 1 letter a and c Law no. 5 of 1999 on Prohibition of Monopolistic Practices
and Unfair Business Competition.
6. In accordance with Article 15 paragraph 2, business actors are prohibited to enter
into a unilateral agreement and force customers to purchase products or services
offered by the business actor. The agreement must be subject to the agreement of
both parties. From the customer and the business actor. If the agreement is only done
by one of the parties concerned then it can be said the business is cheating.
7. Under Article 17, a business actor is not allowed to dominate the market for more
than 50% of the market share of a particular type of product or service. If this
 happens then it will make it difficult for other business actors to enter into the same
business competition product or service.
8. In accordance with Article 25 paragraph 1 letter a, business actors are not allowed
to set trade conditions which may prevent consumers from choosing goods or
services from other business actors. Article 25 paragraph 1 letter c, the difficulty of
other business actors to compete by entering the relevant market. This is because in
the case of IndiHome there is an agreement clause stipulated provisions if someone
unsubscribed from one of the three services earlier, Telkom allegedly will stop all
access their services to the customer.
 CHAPTER IV
RECOMMENDATION

From this case author will give recommendations below:

1. A business actor must create a fair business competition. With the creation of a fair
business competition, it will be more new entrepreneurs who are more confident to
market their products or services and not turn off the business from competitors.
2. In addition to looking for profits, businesses should also pay attention to customers.
Customers are allowed to choose freely to determine what products or services they
need. PT Telekomunikasi Indonsia, Tbk (Telkom) is an example of a company that
provides internet service in the form of IndiHome. Customers using IndiHome can
not freely choose any service they choose, because IndiHome service called Triple
Play already provides three services in one package so customers must use three
services.
3. Business actor must also think about how his business going forward. A business
actor should not do everything possible to gain a lot of profit. Business actors should
also pay attention to any activities that are not allowed in the business. If such
activities are monopoly, monopsony, market control, conspiracy, etc done to a
business then there will be sanction given to a business actor.
4. Komisi Pengawas Persaingan Usaha (KPPU) Must be more strict in carrying out
the applicable law so that no more fraud committed by a company or business actor.
If required, Komisi Pengawas Persaingan Usaha (KPPU) can work with several
companies to minimize the fraud committed by a company or business actors.
 References

1. https://autotekno.sindonews.com/read/1182095/132/kppu-gelar-sidang-perdana-
monopoli-indihome-telkom-1487687319
2. http://business-law.binus.ac.id/2013/01/20/catatan-seputar-hukum-persaingan-usaha/
3. http://nasional.kontan.co.id/news/kppu-gelar-sidang-perdana-monopoli-indihome-
telkom
4. http://tekno.kompas.com/read/2016/10/12/14265407/kppu.selidiki.paket.triple.play.tel
kom.indihome
5. https://tiarramon.wordpress.com/2009/05/26/hukum-bisnis/
6. http://www.dpr.go.id/dokjdih/document/uu/UU_1999_5.pdf
7. http://www.kppu.go.id/docs/Pedoman/draft%20pedoman%20pasal%2015.010611.pdf