The Effectiveness Of Kppu Administrative Fines In Preventing Monopolistic Practices: A Juridical Analysis Of Competition Law Enforcement

Abstract

This study analyzes the effectiveness of administrative sanctions imposed by the Commission for the Supervision of Business Competition (KPPU) in preventing monopolistic practices following the enactment of the Job Creation Law and Government Regulation Number 44 of 2021. Utilizing normative legal research with statutory and conceptual approaches, the findings indicate that changes in the fine imposition mechanism enhance potential deterrent effects. However, their overall effectiveness remains constrained by low compliance, weak enforcement of decisions and a heavy reliance on financial penalties. This condition highlights the need to strengthen sanctioning instruments so that they not only focus on imposing fines but also drive behavioral changes among business actors. Consequently, law enforcement must be reoriented toward restoring market structures through more comprehensive administrative sanctions to foster fair and equitable business competition.