Economic Policy Package: How Policy Delivery Affects Business Competition

Abstract

In the middle of 2015, Government of Indonesia has issued Economic Policy Package XII aimed to create better investment climate in the region/provincial. This policy was taken to improve business climate pursuant to the Indonesia‘s economic condition which are decreasing continuously and complicated in-vestment climate for investors. In order to deliver the policy, local governments shall apply this deregulation packages into regulations as directed by central government. This paper brings facts that some of local government did not ap-ply the Economic Policy Package XII. This condition has potential to create un-fairness in business competition between regions. Therefore, KPPU as one of the committee to control business competition should take a part to provide ad-vice to local government and central government in order to deliver their poli-cy. Recommendations by KPPU are required to create better competition be-tween regions. Keywords: Deregulation, Economic Policy Package, Local Government, Busi-ness Competition