Jurnal Smart Hukum (JSH)
Vol. 5 No. 1 (2026): June-September

Harmonization of Competition Law and the 2026 Indonesian Standard Industrial Classification (KBLI) Regulation in Supporting the Investment Climate

Martono Anggusti (Universitas HKBP Nommensen Medan, Indonesia)



Article Info

Publish Date
30 Jun 2026

Abstract

This article examines the normative and institutional disharmony between Indonesia’s competition law, Law Number 5 of 1999 concerning the Prohibition of Monopolistic Practices and Unfair Business Competition, and the 2026 Indonesian Standard Industrial Classification (KBLI) as the primary regulatory taxonomy for business licensing and investment. The 2026 KBLI introduces new industrial codes reflecting digitalization, the green economy, and service-based business models, yet its interface with competition law remains fragmented. Employing a qualitative normative legal method with statutory, conceptual, comparative, and case approaches, this study analyzes primary legal materials, KBLI 2026 documentation, KPPU decisions, and investment regulations. The findings reveal three layers of disharmony: definitional misalignment between KBLI economic activities and competition law market definitions; procedural disconnection between OSS-based licensing and merger or conduct oversight; and institutional overlap among the Ministry of Investment/BKPM, line ministries, and the KPPU. The article proposes a harmonization framework comprising a competition-sensitivity index for KBLI codes, a joint regulatory guideline between BKPM and KPPU, integrated digital notification protocols, and ex ante regulatory impact assessment for new KBLI classifications. Harmonization is argued not only to enhance legal certainty but also to reduce compliance costs, foster fair market entry, and strengthen Indonesia’s investment climate in an increasingly competitive ASEAN economic landscape.

Copyrights © 2026






Journal Info

Abbrev

jsh

Publisher

Subject

Law, Crime, Criminology & Criminal Justice Social Sciences

Description

Jurnal Smart Hukum (JSH) E-ISSN. 2961-841X is a Legal science journal issued by Inovasi Pratama Internasional. Ltd. The Editorial Board only accepts research and discussion in the field of law which is already in the form of journal articles to be considered for publication. The focus of this ...