Juridical Analysis of the Competitive Neutrality of SOEs in Indonesian Business Competition

Abstract

The competitive neutrality of SOEs is an important issue in Indonesian business competition law because SOEs have a dual position as implementers of the state mandate as well as business actors in the market. This article aims to analyze juridically the limits of SOE exemption in Article 51 of Law No. 5 of 1999 and its relevance to the principle of healthy business competition. This study uses a qualitative method with a juridical-normative approach through literature studies and legal documentation. The analysis was carried out in a descriptive-analytical and prescriptive manner by examining laws and regulations, doctrines, rulings, and academic literature related to competitive neutrality, public interest, and state-owned enterprises. The results of the study show that the exemption for SOEs cannot be interpreted as absolute immunity from competition law, but must be tested based on the principles of legality, necessity, proportionality, and transparency. This article contributes to offering a new framework for reading Article 51 in order to be able to balance the mandate of public services and the protection of competitive markets. Further research is recommended using an empirical-juridical approach on strategic sectors of SOEs.