Empowering Business Competition Supervisory Commission to Protect Small And Medium Enterprises in The Digitalage

Abstract

The aim of the research is to examine empowering the role of the Business Competition Supervisory Commission (KPPU) in protecting Micro, Small, and Medium Enterprises (MSMEs) from unfair competition in Indonesia's digital age. The digital transformation has enabled MSMEs to gain broader market access and explore new business opportunities. However, it has also exposed them to the dominance of large corporations, predatory pricing, and monopolistic practices. Existing regulations, including Law Number 5 of 1999 and Law Number 20 of 2008, have proven inadequate in addressing the complexity of digital market competition. The type of research is normative legal research, while the approaches employed in the research are statutory, conceptual, and historical approaches. The research examines and explores legal gaps and the need for regulatory reform, emphasizing KPPU's strategic role in ensuring a fair, competitive, and inclusive digital ecosystem. The findings of the research emphasise the need to strengthen KPPU's authority, update enforcement mechanisms, and enhance inter-agency coordination to effectively protect MSMEs. In doing so, the study supports efforts to sustain MSMEs' contribution to economic resilience and equitable digital transformation in Indonesia.