Consolidation of Competition Law and Consumer Protection Law in Indonesia: Normative Study Based on Hans Kelsen’s Pure Theory of Law

Abstract

This article examines the urgency of consolidating Competition Law and Consumer Protection Law in Indonesia into a single integrated enforcement agency. Since 1999, Indonesia has operated two separate legal regimes through the Business Competition Supervisory Commission (KPPU) under Law No. 5 of 1999 and the National Consumer Protection Agency (BPKN) under Law No. 8 of 1999, with a total annual budget of Rp 401 billion. This research found that the separation of these two institutions has resulted in measurable structural failure: as of July 2025, Rp 265.49 billion in KPPU fines remained unenforced from 114 final and binding decisions, whilst the BPKN was only able to recover 10.6 per cent of the Rp 424.3 billion in documented consumer losses in 2024, with 70 per cent of its recommendations ignored by ministries and agencies. The total value lost due to the inefficiencies of these two agencies in a single year exceeds their entire budget. Referring to the models of the US Federal Trade Commission (FTC) and the Australian Competition and Consumer Commission (ACCC), and given that 89 out of 148 countries have opted for a consolidation model, this article argues that the establishment of a Competition and Consumer Protection Commission (KPPK) is an urgent constitutional, academic and fiscal necessity for Indonesia.