HARMONIZATION OF ARTICLE 9 OF LAW NO. 22 OF 2001 WITH ARTICLES 17 AND 51 OF LAW NO. 5 OF 1999 REGARDING PERTAMINA’S CONTROL OVER THE IMPORT AND DISTRIBUTION OF PETROLEUM PRODUCTS

Abstract

PT Pertamina (Persero)’s control over the import and distribution of non-subsidized petroleum products raises issues regarding the compatibility of the provisions of Article 9 of Law No. 22 of 2001 on Oil and Natural Gas with Articles 17 and 51 ofLaw No. 5 of 1999 on the Prohibition of Monopolistic Practices and Unfair Business Competition. This study aims to analyze the compatibility of policies restricting the import of non-subsidized petroleum products with the principles of fair business competition and to examine the legal measures that the Business Competition Supervisory Commission (KPPU) can take against potential monopolistic practices in the distribution of non-subsidized petroleum products in Indonesia. The study employs a normative legal method using legislative, conceptual, and case-based approaches, analyzed qualitatively through a literature review. The results of the study indicate that Pertamina’s control over the import and distribution of fuel is justifiable as long as it meets the exceptions stipulated in Article 51 of Law No. 5 of 1999 and is carried out in the public interest without resulting in the abuse of a dominant position. The KPPU retains the authority to conduct oversight and enforce the law if anti-competitive practices are found that fall outside the scope of these exemptions. Therefore, harmonization of the two laws is necessary to ensure legal certainty, healthy business competition, and national energy security