Protecting Digital Market Competition in Indonesia Insights from Malaysia, Singapore, and Global AI Abuse

Abstract

This study examines the legal and economic dimensions of predatory pricing within the context of Indonesia’s digital economy, emphasizing the effectiveness of existing competition law in addressing anti-competitive practices in online markets. The issue has become increasingly relevant as digitalization transforms market dynamics and creates new challenges for the enforcement of fair competition law. The primary objective of this research is to evaluate the effectiveness of Indonesia’s legal framework particularly Law No. 5 of 1999 on the Prohibition of Monopolistic Practices and Unfair Business Competition and Minister of Trade Regulation No. 31 of 2023 in preventing predatory pricing in the digital era. The research employs a normative juridical and comparative approach, with data collected through document studies of legislation, court decisions, and relevant academic literature. The normative approach is applied to assess the alignment between legal norms and their implementation in practice, while the comparative approach analyzes competition policies in Singapore and Malaysia, two ASEAN countries with regulatory frameworks and supervisory mechanisms that are more adaptive to the digital economy. Findings indicate that Indonesia’s legal framework remains largely reactive rather than preventive, with weaknesses in the definition of predatory pricing and in inter-agency coordination. In contrast, Singapore and Malaysia demonstrate stronger institutional mechanisms and more adaptive digital governance. This study recommends strengthening the legal definition, enhancing enforcement capacity, and improving cross-sectoral coordination to support healthy competition in the digital economy. Furthermore, it underscores the importance of ASEAN regional cooperation to improve market oversight and foster greater integration of competition policy across the region.