Académique Documents
Professionnel Documents
Culture Documents
Cross-Border
M&A Trends & Issues
in Indonesia
Mark Innis, Foreign Legal Consultant, Jakarta
Agenda
Indonesia Economic Overview
Overview of Indonesia M&A Activity in 2016
Indonesia Economic
Overview
Economic Overview
Adequate policies enhance the economic outlook
Source: Transaction Trail Half Year Issue 2016 by Duff & Phelps
2016 Hadiputranto, Hadinoto & Partners
11
Source: Transaction Trail Half Year Issue 2016 by Duff & Phelps
2016 Hadiputranto, Hadinoto & Partners
12
Source: Transaction Trail Half Year Issue 2016 by Duff & Phelps
2016 Hadiputranto, Hadinoto & Partners
13
Why?
14
Industrials
Consumables
Looking forward
15
16
18
19
20
21
Merger
22
general consents
breach
23
Proposed amendments
24
25
Long Closings
26
27
THANK YOU
For more information, please contact:
Mark Innis
Foreign Legal Consultant
mark.innis@bakernet.com
Wimbanu Widyatmoko
Senior Partner
wimbanu.widyatmoko@bakernet.com
Mochamad Fachri
Associate Partner
mochamad.fachri@bakernet.com
2016 Hadiputranto, Hadinoto & Partners
28
www.hhp.co.id
Instinctively global
Being global is part of our DNA. Our difference is the way we think, work and behave we
combine an instinctively global perspective with a genuinely multicultural approach, enabled by
collaborative relationships and yielding practical, innovative advice.
Hadiputranto, Hadinoto & Partners is a member firm of Baker & McKenzie International, a Swiss Verein with member law
firms around the world. In accordance with the common terminology used in professional services organizations,
reference to a partner means a person who is a partner, or equivalent, in such a law firm. Similarly, reference to an
office means an office of any such law firm.
2016 Hadiputranto, Hadinoto & Partners
All rights reserved.
Materi
MERGER & ACQUISITION
Competition Policy Perspective
M. Nawir Messi
Introduction
To bring into implementation of Articles 28 & 29 of Law
No. 5/1999, govt regulation (PP 57/2010)
was
introduced in 2010 11 years after the law.
Post merger notification regime, what was the historical
consideration?
Merger Control has been implemented for about 6 years.
Hundreds of merger transaction were notified every
years.
Notified transactions include those taken place at such
global level as in Europe, USA, Japan, South Korea,
Malaysia, etc.
2
KPPU & COMPETITION POLICY
Komisi
Pengawas
Persaingan
Usaha
M&A CASE
Company A
(Multinational
Conglomerate)
Acquired
Domestic Market
Company Z
International Market
3
KPPU & COMPETITION POLICY
Komisi
Pengawas
Persaingan
Usaha
4
KPPU & COMPETITION POLICY
Komisi
Pengawas
Persaingan
Usaha
EASY TO MERGE ??
5
KPPU & COMPETITION POLICY
Komisi
Pengawas
Persaingan
Usaha
M&A Wave II
1916-1929 Merger occurred on Oligopolistic Industry
M&A Wave IV
1981-1989 Trend Hostile Take Over
6
KPPU & COMPETITION POLICY
Komisi
Pengawas
Persaingan
Usaha
7
KPPU & COMPETITION POLICY
Komisi
Pengawas
Persaingan
Usaha
Why the
business
Merge?
8
KPPU & COMPETITION POLICY
Komisi
Pengawas
Persaingan
Usaha
Efficient
New Products
Pro-competitive
Increase prices
Limit choice
9
KPPU & COMPETITION POLICY
Komisi
Pengawas
Persaingan
Usaha
10
KPPU & COMPETITION POLICY
Komisi
Pengawas
Persaingan
Usaha
Fair price
Poverty reduction
Fair
competition/
merger control
Increased quality
and quantity of
goods and services
Increased job
opportunity (reduce
unemployment)
INCREASED
WELFARE OF THE
SOCIETY
Economic growth
Better services
11
KPPU & COMPETITION POLICY
Komisi
Pengawas
Persaingan
Usaha
12
KPPU & COMPETITION POLICY
Komisi
Pengawas
Persaingan
Usaha
Standard of Review
Komisi
Pengawas
Persaingan
Usaha
WHAT WE OBSERVE
Market Definition
Calculate the Market shares and concentration levels as a result of the merger
Nature of competition betwen firms
Homogeneity, proximity of products
Barriers to entry
Barriers to expansion
Symmetry of size/power
Price transparency
Switching cost
14
KPPU & COMPETITION POLICY
Komisi
Pengawas
Persaingan
Usaha
Question to Address
15
KPPU & COMPETITION POLICY
Komisi
Pengawas
Persaingan
Usaha
16
KPPU & COMPETITION POLICY
Komisi
Pengawas
Persaingan
Usaha
Formalities
Obligatory (not optional);
Threshold for notification: asset or sales basedthreshold;
Asset 2,5 trillion rupiahs (non bank)
Sales 5 trillion rupiahs (non bank)
Asset 20 trillion rupiahs (bank)
Primary indicator: changes in HHI (150);
Timeframe for Review : 90 days
Data requirement: obligatory;
17
KPPU & COMPETITION POLICY
Komisi
Pengawas
Persaingan
Usaha
Komisi
Pengawas
Persaingan
Usaha
Issues to Concerns
Availability of data???
Availability of business plan for merged
firms???
Inconsistency between Objectives of Law No.
5/1999 and Govt Regulation (PP 57/2010)
Concerning Merger;
Post Merger regime has been less effective???
19
KPPU & COMPETITION POLICY
Komisi
Pengawas
Persaingan
Usaha
20
KPPU & COMPETITION POLICY
Komisi
Pengawas
Persaingan
Usaha
60
5
0
50
40
69
30
53
50
43
43
20
34
10
0
0
3
0
2010
0
2011
1
2012
Merger
1
2013
1
2014
Acquisition
Consolidation
3
2015
1
2016 (Oktober)
21
KPPU & COMPETITION POLICY
Komisi
Pengawas
Persaingan
Usaha
Domestic Companies
31%
69%
22
KPPU & COMPETITION POLICY
Komisi
Pengawas
Persaingan
Usaha
F A I R
C OM P E T I T I O N
for
SOCIAL
WELFARE
23
KPPU & COMPETITION POLICY
Komisi
Pengawas
Persaingan
Usaha
Terima kasih
http://www.kppu.go.id
DISCLAIMER:
The opinions expressed in this presentation and on the previous slides are
solely those of the presenter and not necessarily those of KPPU. All
information included here falls under the fair use of the Indonesian law for the
openness of public information. The presenter strives for accuracy of any
data and information in these slides, but cannot be held responsible for any
errors in those featured. Any quotation from the slides is allowable by
mentioning or referring to the source. Thank you.
ADDRESS:
KPPU Building
Jl. Ir. H. Juanda No. 36
Jakarta 10120, Indonesia
P. +6221-3507015/16/49
F. +6221-3507008
E. infokom@kppu.go.id
E. international@kppu.go.id
KPPUINDONESIA
@KPPU
KPPUOFFICIAL
For more information, annual reports, articles, and other publications, please
visit our official web page.
24
Materi
Notifikasi Merger
Komisi Pengawas Persaingan Usaha
NOTIFIKASI MERGER
MERGER
PENGGABUNGAN
PELEBURAN
PENGAMBILALIHAN
PENGGABUNGAN/MERGER
PERUSAHAAN
X
PERUSAHAAN
Y
PELEBURAN/KONSOLIDASI
PERUSAHAAN
Y
PERUSAHAAN
X
PERUSAHAAN
Z
PENGAMBIALIHAN SAHAM/AKUISISI
PERUSAHAAN
X
PERUSAHAAN
A
PERUSAHAAN
Y/INDIVIDU
PERUSAHAAN
B
PERUSAHAAN
B
KONSULTASI
EFEKTIF
YURIDIS
PEMBERITAHUAN
Perusahaan A
Perusahaan B
Perusahaan
X
Perusahaan
Y
MERGER ASING
ULTIMATE PARENT
COMPANY
ULTIMATE PARENT
COMPANY
COMPANY A
COMPANY V
COMPANY B
COMPANY C
ULTIMATE PARENT
COMPANY
ULTIMATE PARENT
COMPANY
COMPANY A
COMPANY V
COMPANY W
COMPANY B
COMPANY C
COMPANY W
PENJUALAN
Indonesia
PT D
PT X
ULTIMATE PARENT
COMPANY
COMPANY V
COMPANY A
COMPANY V
COMPANY W
COMPANY B
ULTIMATE PARENT
COMPANY
COMPANY A
PT D
COMPANY C
Indonesia
PT D
ULTIMATE PARENT
COMPANY
ULTIMATE PARENT
COMPANY
COMPANY B
Indonesia
PT X
Indonesia
COMPANY C
COMPANY W
PENJUALAN
50%
50%
X
50%
A
50%
100%
50%
X
50%
X
KONSULTASI
Rencana Merger Sudah Ada
Memenuhi
Syarat
PEMBERITAHUAN
Merger Telah Efektif Yuridis
Memenuhi
Syarat
Pemberitahuan ke KPPU
Penilaian Awal
Penilaian
Penilaian Menyeluruh
Pendapat KPPU
Pendapat KPPU
TERIMA KASIH
DIREKTORAT MERGER
KOMISI PENGAWAS PERSAINGAN USAHA REPUBLIK INDONESIA
GEDUNG KPPU LANTAI 4
JL. IR.H. JUANDA NO. 36 JAKARTA PUSAT
0213507015 EXT (311)