The prominent role of innovation in the emerging digital market in Indonesia presents new challenges for current competition law and policy. Traditionally reliant on market definition for the analysis, the present competition law may not yet have sufficiently taken innovation into consideration. In the competition policy area, while innovation has not taken a clear role in tailoring suitable regulations or approaches, markets have attempted to adapt themselves to the new changes in order to meet rising demand. The present state of policy is illustrated by the development oj online transportation networks like those provided by Uber and GrabCar, services similar to those that have been traditionally offered by taxi companies. While regulation asymmetry has been accused of not allowing a level playing field for conventional taxis versus online transportation networks, the concept of the sharing economy seems to address today's policy approach in Indonesia, which favors ex ante regulation on public transportation service provision in the country. This paper examines the applicable regulations in the transportation network industry and discusses how competition policy might cope with this issue and in what cases competition law might deal with innovation brought by online transportation network in the public transportation industry in Indonesia.
The growth of the digital market has challenged competition policy in terms of how innovation should be considered. This article deals with the current market development in Indonesia as a showcase for how innovation responds to market demand faster than state regulations. The study focuses on Go-Jek, a technology company that offers a wide range of online services, including transportation, delivery, and mobile payment, by bringing together consumers and service providers; hence, Go-Jek plays a role as an intermediary and at the same time also as an infomediary that collects information from users and shares it with its users. While policy makers and regulators struggle to find the most workable policies and regulations, markets take initiatives to regulate themselves to protect the interests of the contracting parties. Questions remain about the extent to which party interests are balanced out and how self-regulation could meet established public policy. The analysis in this article considers Indonesian competition authority (KPPU) Regulation No. 4. In the European Union (EU), the desire to advocate self-regulation has been emphasized in the EU Agenda on Better Regulation in 2015 by considering ''well-designed nonregulatory means'' in the policy for better regulation. Taking a lesson from the EU, this article discusses three key issues. First, how and to what extent does self-regulation of online platforms govern transactions being made on the platform. Second, what challenges do self-regulation of online platforms pose to competition. Third, which policies could the government make to deal with the self-regulation of online platforms.
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