The Largest Fine Decision In Kppu History: The Sany International Case And Its Implications For Business Competition In Indonesia

• Admin
• News and Insights
• August 14, 2025

THE LARGEST FINE DECISION IN KPPU HISTORY: THE SANY INTERNATIONAL CASE AND ITS IMPLICATIONS FOR BUSINESS COMPETITION IN INDONESIA

A. Introduction

The competition infringement case involving Sany International Development, Ltd. and its affiliates has drawn public attention, not only because of the nature of the violations, but also because of the large fine imposed by the Business Competition Supervisory Commission (KPPU). With a total fine reaching Rp 449 billion, this verdict is the largest in the KPPU’s history, surpassing the fine imposed on Google the previous year. This case sets an important precedent in the enforcement of competition law in Indonesia, while demonstrating the KPPU’s consistency in prosecuting violations, whether committed by foreign or domestic business actors.

B. Definition & Legal Basis of Business Competition

Fair business competition is a condition in which business actors compete fairly without engaging in monopolistic practices or practices detrimental to the market. The legal basis for this is Law Number 5 of 1999 concerning the Prohibition of Monopolistic Practices and Unfair Business Competition. In this ruling, the KPPU declared the Respondents to have violated:

1. 1. Article 14 of Law No. 5 of 1999 concerning Vertical Integration); and
   2. Article 19 letters a, b, c, and d of Law No. 5 of 1999 concerning Market Control.

C. The Urgency of Enforcing Competition Laws

Enforcing competition law is crucial to prevent market dominance by one or a group of business actors. Abusive vertical integration practices can hinder product distribution and eliminate competitors. The Sany case demonstrates how excessive market dominance can harm other businesses and consumers. This decision, the largest fine in the KPPU’s history, is expected to create a deterrent effect while ensuring market competitiveness.

D. Chronology & Identity of the Decision

1. 1. Case Number: 18/KPPU-L/2024
   2. Institution: KPPU
   3. Decision Date: August 5, 2025
   4. Reported: a. Sany International Development, Ltd. (Reported Party I), b. PT Sany Indonesia Machinery (Reported Party II), c. PT Sany Heavy Industry Indonesia (Reported Party III), d. PT Sany Indonesia Heavy Equipment (Reported Party IV)

The panel found violations of vertical integration and market dominance, motivated by discriminatory practices against representative dealers in Indonesia and a monopoly on the sale and distribution of Sany brand trucks and truck parts. These violations violate Article 14 and Article 19, letters a, b, c, and d of Law No. 5 of 1999. The fines imposed are as follows:

1. 1. Sentencing Reported Party IV to pay a fine of Rp. 32,000,000,000.00 (thirty-two billion rupiah) which must be deposited into the State Treasury as a deposit of income from fines for violations in the field of business competition of the KPPU Work Unit;
   2. Sentencing the Reported Party III to pay a fine of Rp. 57,000,000,000.00 (fifty seven billion rupiah) which must be deposited into the State Treasury as a deposit of income from fines for violations in the field of business competition of the KPPU Work Unit;
   3. Sentencing the Reported Party II to pay a fine of Rp. 360,000,000,000.00 (three hundred and sixty billion rupiah) which must be deposited into the State Treasury as a deposit of income from fines for violations in the field of business competition of the KPPU Work Unit;
   4. Ordering the Respondent I to revise the dealer agreement by removing provisions that violate Law Number 5 of 1999; and
   5. Ordered the Reported Party I to improve the distribution channels for trading Sany brand trucks and their spare parts.

E. Conclusion

KPPU Decision Number 18/KPPU-L/2024 confirms that Sany International and its affiliates were proven to have committed serious violations of Law No. 5 of 1999, namely vertical integration and market control violations that hinder business competition. The total fine of IDR 449 billion is the largest fine in the KPPU’s history, and this decision sets an important precedent for the enforcement of business competition law in Indonesia. The KPPU demonstrates its commitment to firmly and equally prosecute violations against both foreign and domestic business actors. The KPPU also ordered improvements to the distribution system and business agreements to prevent the recurrence of similar practices.

Author:

Estomihi

Editor: 

Muhammad Arief Ramadhan, S.H.

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