Exception to Small Businessman by the Law No. 5 Year 1999 Concerning

the Prohibition of Monopoly Practice and Unfair Business Competition

Reviewed from the Islamic Economy Perspective

Desi Apriani and Zulherman Idris

Department of Law, Universitas Islam Riau, Pekanbaru, Indonesia

Keywords:

Law of Indonesian Business Competition, Exception to Small Business, Economic Principles of Islam

Abstract:

The Law of Republic Indonesia No. 5 year 1999 concerning the prohibition of monopoly practice and unfair

competition excludes the small-scale businessmen of the enactment of such laws as a form of legal protection.

There are pros and cons related to the exception to the small businessmen. The pros agree with the weakness

of small-scale businessmen power and the deceit won’t make a broad impact. And the cons disagree with the

reason equality before the law and concerns about the use of policies by irresponsible individuals. Thus, this

motivates the writer to perform analysis to discover the exception toward the small-scale businessmen as a

form of legal protection that is necessarily needed or not in terms of the principles of Islamic economy. The

purpose of this paper is to recommend the ideal legal concept for business competition law of Indonesia in

accordance with Islamic law. This research is juriditial normative research, used secondary data. Considering

that a regulation must be in accordance with the legal values that is prevailing in the community, including the

value of religious law, therefore the small-scale businessmen should not be excluded because it is contrary to

Islamic economic principles that require every businessman to operate their business activities fairly.

1 INTRODUCTION

The Law of Republic Indonesia No. 5 year 1999

the The prohibition of Monopoly Practice and Unfair

Business Competition was made as a media to cre-

ate a conducive business climate, therefore there is a

guarantee that there will be equal business opportu-

nities for large scale, medium scale and small scale

businessmen based on economic democracy. Accord-

ing to the purpose of the enactment of The Law of

Republic Indonesia No. 5 Year 1999 concerning the

prohibition of Monopoly Practice and Unfair Busi-

ness Competition, this matter is related to the reasons

for the enactment of The Law of Republic Indonesia

No. 5 Year 1999 which can be seen from the con-

sideration of ”considering” the Law, namely the ex-

istence of equal business opportunities for each busi-

ness owner in a fair competition situation.

The small business owner is one of several crite-

ria of businessmen in Indonesia beside medium busi-

nessmen and large businessmen. According to Article

The Law of Republic Indonesia No. 5 Year 199 con-

cerning The Ban of Monopoly Practice and Unfair Business

Competition

1 point 2 The Law of Republic Indonesia No. 20 Year

2008

concerning the micro, small and medium en-

terprises, small business owner is a standalone proliﬁc

economic emprise, run by individual or business en-

tity that is not owned, controlled, or become a part

of either directly or indirectly from medium or large

businesses that fulﬁll the criteria speciﬁed as the small

business according to The Law of Republic Indonesia

No. 20 Year 2008.

When referring to The Law of Republic Indone-

sia No. 20 of 2008 concerning the micro, small and

medium enterprises, the concept of micro, small and

medium enterprises have several meanings, which

are: ﬁrst, the business was established for the pur-

pose of economic activity and non-proﬁt activities;

Second, the productive enterprise or generate proﬁts

or proﬁts from the venture; third, the efforts of inde-

pendent or stand-alone not part, branches, or afﬁliates

of other businesses; Fourth, the business owned by an

individual or a business entity (Komarudin, 2014).

The Law of Republic Indonesia No. 20 Year 2008 con-

cerning The Micro, Small and Intermediate Enterprise, as

the amendment of The Law No. 5 Year 1999 about Small

Enterprise

202

Apriani, D. and Idris, Z.

Exception to Small Businessman by the Law No. 5 Year 1999 Concerning the Prohibition of Monopoly Practice and Unfair Business Competition Reviewed from the Islamic Economy

Perspective.

DOI: 10.5220/0009104402020208

In Proceedings of the Second International Conference on Social, Economy, Education and Humanity (ICoSEEH 2019) - Sustainable Development in Developing Country for Facing Industrial

Revolution 4.0, pages 202-208

ISBN: 978-989-758-464-0

The small business criteria according to article 6

paragraph (2) of The Law of Republic Indonesia No.

20 year 2008 is to have a net worth of more than Rp

50,000,000 (ﬁfty million rupiah) up to at most Rp.

500.000.000 (ﬁve hundred million rupiah) not includ-

ing land and buildings or places of business has an-

nual sales of more than us $300 million (three hun-

dred million rupiah) up to at most 2.5 billion rupiah

(two billion ﬁve hundred million rupiah). While for

businesses that value of assets as well as turnover un-

der the small business criteria, is a kind of micro en-

terprises.

It can not be denied that the small business owner

is one of the pillars of the economy that must get the

opportunity, support, protection, and development of

existence (Komarudin, 2014). Related to the protec-

tion against the small business owner, The Law of Re-

public Indonesia No. 5 of 1999 on the The prohibition

of Monopoly Practice and Unfair Business Competi-

tion in Indonesia is one of the regulations that protect

small businesses owners by banning all activities of

businessmen that led to the economic concentration

in the hands of businessmen or groups of businessmen

with certain business, and prohibits all unfair compe-

tition (fraud). This is because the philosophy or back-

ground of the enactment of the law on the Prohibi-

tion of Monopoly Practice and Unfair Business Com-

petition is to provide protection against small busi-

ness owner by giving the guarantee of the existence of

the equal business opportunity among every citizens

of Indonesia. With the guarantee of the opportunity

of equal business opportunity and ban all forms of

monopoly practice and unfair business competition,

then the threat of a major ﬁnancier of strength will

get rid of the small businessmen can be avoided.

Regarding to the protection against the small busi-

ness owner, which according to the writer is interest-

ing to be discussed further was the exception of small

business owner from entry into force of the act as

stated in Article 50-point H on The Law of Republic

Indonesia No. 5 Year 1999 concerning the prohibition

of Monopoly Practice and unfair business competi-

tion. This exception means that The Law of Republic

Indonesia No. 5 Year 1999 concerning the prohibi-

tion of Monopoly Practice and unfair competition is

not applicable to small businesses owner. Further, be-

cause of this exception, small business owner is not

prohibited from doing any act or activity that is pro-

hibited by law concerning the practice of monopoly

and unfair business competition.

Exceptions to the principals of small businesses

got a different response (pros and cons) from the ob-

server of business and competition law and research

that is conducted in Indonesia. According to A. Ju-

naidi, with the exception of this the Legislative ap-

pears to hope there is a chance for small business

owner to develop themselves to not losing the busi-

ness competition or at least get the same opportuni-

ties with medium and large businessmen

. Mean-

while, according to Mustafa Kamal Rokan, the reason

of the grant of privilege in the form of exceptions to

these small business owners due to the presumption

that small entrepreneurs still need protection in order

to develop, as well as for reasons of social the small

entrepreneurs that the position is weak, so that votes

will not likely make a monopoly (Rokan, 2010).

In line with that according to Ngurah Manik Sid-

harta and I Ketut Markeling, the reason for the exis-

tence of the privilege in the form of granting excep-

tions to these small businessmen due to the presump-

tion that small entrepreneurs still need protection in

order to develop, as well as social reasons that the

weak position of small entrepreneurs, so that votes

will not likely make a monopoly (Shidarta and Marke-

ling, 2017). Similar with it anyway, and Darren says

that in fact exceptions to the perpetrator of a small

business is a form of protection provided by the Act

No. 5 of 1999 th on the prohibition of Monopoly

Practice and unfair competition against perpetrators

of small businesses. He said further protection against

the perpetrators of a small business that was supposed

to be given, since they may not able to compete with

medium and large businessmen (Hermansyah, 2008).

On the other hand, based on reports from Research

on Business Actors Awareness on the Enforcement

of the Competition Law and Awareness on the New

Commission in several big cities in Indonesia, in gen-

eral the respondent does not approve the exception of

small business owner from The Law of Republic In-

donesia No. 5 Year 1999 concerning the prohibition

of Monopoly Practice and unfair competition. The

basic foundation of the primary consideration is that

this exclusion is contrary to the fundamental equation

in the presence of the law (equality before the law). In

addition, there is also concern that with this exception

gave the small business owner can have the opportu-

nity for doing monopoly and unfair business compe-

tition, while not obviously small business owner cri-

teria so that it can result for misuse of status or posi-

tions owned by parties that take advantage by taking

refuge in that position (Rokan, 2010). In the mean-

time, Susanti Adi Nugroho argues that the exception

relating to the protection of small business principals

by The Law of Republic Indonesia No. 5 Year 1999

concerning The prohibition of Monopoly Practice and

Junaidi, A., KPPU Protecting Small Business Ac-

cess, Jurnal Berkala Komisi Pengawas Persaingan Usaha.

kppu.go.id

Exception to Small Businessman by the Law No. 5 Year 1999 Concerning the Prohibition of Monopoly Practice and Unfair Business

Competition Reviewed from the Islamic Economy Perspective

203

unfair competition is only temporary, and the enact-

ment shall be reviewed consistently (Nugroho, 2012).

Indonesia as a country that does not adhere to so-

cialist or a capitalist economic system, but have their

own economic system, namely the economic system

of Pancasila. The implementation of the economic

system of Pancasila as the ideology of Indonesia can-

not be detached from religious value. Mubyarto said

that the economic activity of Pancasila economy is

regulated in the Constitution 1945 need moral based

on the deity, humanity, nationalism, and democracy

in achieving economic justice (Simanjuntak, 2018).

Based on explanation above, the writer is inter-

ested to analyse the exceptions of small business

owner by Indonesia’s business competition law from

the standpoint of the principles of Islamic economy.

This is because Islamic law is a law that cannot be

ignored in the establishment of national laws consid-

ering the majority of society Indonesia is Islam (Ab-

dullah, 2017). In the other hands, As a country with

Muslim majority population, the question between Is-

lam and democracy is always on the table with mixed

answers (Ikhwan, 2018). Moreover, the idea that the

law it is the law to suit the prevailing values in the

communities where the law is applied. Religious val-

ues should constitute the values into the grip of life of

the community, so that the state’s law should also ac-

commodate the religious values to be described as the

ideal of the law and in accordance with the conditions

of the people .

2 RESEARCH METHOD

This paper is part of the research grant program Di-

rectorate of higher education Ministry of Research,

technology and higher education of the Republic

of Indonesia with a Doctoral Dissertation Research

Scheme under the title ”An analysis to the excep-

tion to the small business owner by The Law of Re-

public Indonesia No. 5 Year 1999 concerning the

prohibition of Monopoly Practice and unfair compe-

tition”. Therefore, this research is juridical norma-

tive research by qualitative analytic. Speciﬁcation

of the research is Descriptive Analytic with how to

provide data about the human meticulous, circum-

stances or other symptoms with the aim of celebrat-

ing the hypothesis-hypothesis, in order to assist in the

strengthening of the theories old or within the frame-

work of drawing up new theories (Soekanto, 2008).

The data that the author use is secondary data con-

sisting of primary legal materials and secondary le-

gal materials which include : a) The primary legal

materials is the material that binds, consist of norms

and rules (Laws and regulations related to the fun-

damental issues that the author examined in this re-

search) like Act no.5 1999 on Prohibition of monopo-

listic practice and unfair business competition. b) The

secondary legal materials such as any other relevant

literature.

3 DISCUSSION

3.1 Prohibition of the Monopoly

Practices and Unfair Business

Competition in Indonesia

Indonesia is a legal state with democracy system, the

economic system in Indonesia is based on the fam-

ily principles with the economic democracy principle.

Related to that, The Law of Republic Indonesia No.

5 Year 1999 concerning The Ban of Monopoly Prac-

tice and Unfair Business Competition, emerges as one

of the tools to create a conducive business climate,

so that there will be a guarantee to create an equal

business opportunity for large, medium and small en-

terprise owner based on economic democracy. The

main purpose of the enactment of the law that ban the

monopoly practice and unfair business competition is

to maintain the public’s interest and to increase the

national economy efﬁciency as one of the efforts to

increase the society’s welfare which is consumer.

The Law of Republic Indonesia No. 5 Year 1999

concerning The Ban of Monopoly Practice and Un-

fair Business Competition has been legitimized on

March 5th, 1999 and enacted effectively on March

5th, 2000. The Law of Republic Indonesia No. 5

Year 1999 is the source of law of business competition

in Indonesia, although the regulation concerning the

ban of monopoly practice and unfair business com-

petition can be found on the other regulation that has

been enacted before The Law of Republic Indonesia

No. 5 Year 1999 was being legitimized. For exam-

ple, the unfair trading practices can be charged under

article 382 bis of Indonesian Penal Code. Likewise,

the competitor that suffered a loss that is caused by

the unfair business competition can be ﬁle a lawsuit

under the Article 1365 of Indonesian’s Civil Law. It

is also expected from the industrial sector to avoid the

monopoly practice and unfair business competition,

as well as stated on The Law of Republic Indonesia

No. 5 Year 1999 concerning the Industrial.

The laws that prohibit the practice of monopoly

and competition are unhealthy businesses legal com-

pleteness needed in an economy that adhere to market

mechanisms. The legislation is necessary to guaran-

ICoSEEH 2019 - The Second International Conference on Social, Economy, Education, and Humanity

204

tee the freedom to compete in the economy so that

it can take place without a hitch, and on the other

hand the laws can be signed and guarding so as not

happening practices that do not healthy and unnatural

(Nugroho, 2012).

With the ban of competition and antitrust practice

efforts is not healthy, it can lead to the creation of

a market that is not distorted, thereby creating more

business opportunity for businessmen. This situation

will force businessmen to be more innovative in pro-

ducing and marketing the products or goods and or

services to them. This means that indirectly bans the

practice of monopoly and competition of unhealthy

businesses will provide beneﬁts to consumers in the

form of higher quality products, competitive prices

and better service (Usman, 2004).

3.2 The Potential of Small Businesses to

Do Things Are Prohibited by Law

No. 5 Year 1999

Many who know The Law of Republic Indonesia

No. 5 Year 1999 this as the law of ”anti-monopoly”.

Whereas the The law No. 5 Year 1999 is the law

on The prohibition of Monopoly Practice and unfair

competition. By recognizing The Law of Republic In-

donesia No. 5 Year 1999 as the law “antimonopoly”

allows the existence of a difference of interpretation

of the meaning of the related legislation. Monopoly

Practice and unfair business competition are have dif-

ferent meaning, though have a relationship to each

other.

According to Article 1 point 1 of The Law No.

5 Year 1999 on the prohibition of Monopoly Prac-

tice and unfair business competition, monopoly has

the sense as a form of mastery over the production

and/or marketing of goods and/or services by a par-

ticular offender effort or one group of businessmen.

Thus, a monopoly according to The Law of Republic

Indonesia No. 5 Year 1999 does not mean the condi-

tion that there is only one seller (a single seller), but

a form of mastery of a market share of over 50% by

one or a group of businessmen (Syafrinaldi, 2018).

Meanwhile, according to the Article 1 point 2 of

The Law of Republic Indonesia No. 5 Year 1999, the

practice of monopoly has sense, i.e. the concentra-

tion of economic power by one or more perpetrators

attempt that resulted in the acquisition of production

and/or marketing of goods and/or speciﬁc services

giving rise to unhealthy business competition and can

be detrimental to the public interest. The concentra-

tion of economic power alone means a real mastery

of a market concerned by one or more perpetrators

effort so that it can determine the prices of goods

and/or services. Deeds of businessmen which can re-

sult in the occurrence of monopolistic practices such

as these build oligopoly (article 4), Monopoly (article

17), Monopsoni (article 18), mastery of the market

(article 19, 20, 21), abuse of dominant position (arti-

cle 25), and others.

As for the unfair business competition as men-

tioned in article 1 point 6 of The Law No. 5 Year

1999, have sense i.e the rivalry between the perpe-

trator’s efforts in running the production and/or mar-

keting of goods and/or services done by dishonest or

against the law or hinder competition efforts. Unfair

Business competition is often referred to as fraudulent

with competition (unfair competition). The works of

businessmen that led to these unfair business competi-

tions such as pricing agreements (article 5), Divisions

of the agreement (article 9), Cartel (article 11), Con-

spiracy in determining the winners of tenders (article

22), etc.

Understanding the practice of monopoly, then

surely this can only be done by big businessmen, but

unfair business competition can be done or caused by

activities of each trade both large and small. This

is because every human being basically has free will

and the possibility of doing wrong, as advanced by

Montesquieu ”... this is because on the one hand, the

particular intelligent beings are of a ﬁnite nature, and

consequently liable to error; and on the other, their

nature requires them to be free agents” (Montesquieu,

1949). With the aim to get the highest possible prof-

its with a capital of every detail, then the potential of

each trade good-big or small-cheating in carrying out

their business activities are the same.

3.3 The Islamic Principle of Business

Competition

Islamic law expressly prohibits the practice of

monopoly, cartels, barrier to entry, selling loss, price

discrimination and so on. History of economic

thought of Islam also portrays the history of scrutiny

of the practice of monopoly is one of the very impor-

tant institutions were presented by the State author-

ities in order to maintain fairness in the trade mar-

ket. Islamic history mention, after the formation of

the State in Medina, Prophet Muhammad as head of

government reforms and modiﬁcation of the structure

of the institution in what was formerly the revolution-

ary civilization traces of Polytheists. The Prophet im-

mediately review the merchant, whether valid or not

honest in doing deals or in running its business activ-

ities (Rokan, 2010).

Economic activity as an integral part of mua-

malah, cannot be removed with moral urgency. Islam

Exception to Small Businessman by the Law No. 5 Year 1999 Concerning the Prohibition of Monopoly Practice and Unfair Business

Competition Reviewed from the Islamic Economy Perspective

205

is very reconciling morals with process between mua-

malah, i.e. with the attitude be honest, reliable, fair,

ihsan, do virtue, friendship, and collaborate is taawun

(Hamid, 2007).

In AlQuran explained that in humans should be

economical to realize the command of Allah SWT in

order that his life as a people who need each other and

each other’s live, working each other mutual and am-

icable, not turn off each other to win. Further Mustaq

Ahmad says Quran gives consideration about distri-

bution of wealth as one of the most important in es-

tablishing and creating a healthy economy. Which is

a requirement for the implementation of business ac-

tivity (Salam and Saib, 2004).

Moral for Muslims play a role of great importance

and has always been a life stance that guidelines de-

rived from the teachings of the Quran, the Hadith, the

Prophet or Ijtihad, i.e. using common sense in de-

veloping applied the teachings of Islam in the lives

of everyday. The purpose of the on that man can do

with his best in the run economic so that human activ-

ity that does not deviate from the rule of Islam. The

structural social economy has weathered to a healthy

and orderly manner, must be in line with the interests

of moral, if material needs walk itself and the human

relationship is measured by the size of the material

just like the capitalist economic structure, it will be

broken a good economic system and will change hu-

man nature of moraliy the noble nature hernia very

low and posed the lusts (Salam and Saib, 2004).

While Islamic economics emphasize justice, wel-

fare and honesty. Hasmerits of the Islamic economic

system that should be the way for Muslims to give

well-being and becoming a necessity. The economic

sharia is Islamic economics in the U.S. use a way

for Muslims to complete their economic needs. It is

Refers to the meaning of the word sharia which means

wide way. As a fair economy and provide for the

public welfare, it is feasible to make our way through

the U.S. economy sets Islamic principles (Supriyadi,

2014).

In Alquran explained that in humans should be

economical to realize the command of Allah SWT in

order that his life as a person who need each other

and each other’s lives, working each other mutually

and amicable. Instead of turning off each other to win

on its own. Further Mustaq Ahmad, as quoted Fachri

Baits says Al Quran gives consideration about distri-

bution of wealth as one of the most important in es-

tablishing and creating a healthy economy, which is

a requirement for the implementation of the business

activity (Salam and Saib, 2004).

Islam recognizes all human economic activities

that are lawful as commerce, trade, business partners

of cooperation, joint stock company, the economic ac-

tivities and operations are halal

. But Islam stipulates

rules on commercial activities that are intended to en-

sure that all of it is done by honest, sincere and help-

ful. The Prophet said: “the prophets is a sincere and

honest merchant, so are the people who are loyal and

Martyrs”

3.4 Exceptions to the Principals of

Small Businesses by the Law No. 5

Year 1999 on the Prohibition of

Monopoly Practice and Unfair

Business Competition Reviewed the

Economic Principles of Islam

In one paragraph that is very important, the Alquran

acknowledges the objective character and universality

of justice are equated with good deeds (moral virtues-

the virtues), which address the community – people

of different religions and warns humanity to ”per-

forming good deeds”: ”to every faithful among you

(religious people) we provide rules and path (behav-

ior). When God willed, you undoubtedly made her

one person (based on the rules and the way it is), but,

(he does not do so). God wanted to test you against

granting to you. Therefore, what he (i.e., compete

with samalain) in doing good. Because Allaah you

will all return, and he will tell you (the truth) about

what you cannot agree that

In Islamic Economics, business and ethics should

not be seen as mutually opposed, for the business

which is the symbol of worldly affairs is also consid-

ered an integral part of the incidental investment here-

after. This means that if the business orientation and

investment efforts hereafter European as worship and

is the totality of compliance to the Lord, then the busi-

ness itself must be in line with the moral norms based

on the faith to the afterlife. The businessmen de-

manded be no contradiction between the intentionally

sayings and deeds in his business. They demanded

exactly the promise, on time, recognizes the weak-

nesses and shortcomings, always improve the quality

of goods or services on an ongoing basis and should

not cheat and lie. The business person prosecuted

has the awareness about the ethics of moral, because

both are needing that must-have. Businessmen who

are careless and do not keep your ethics won’t sell

them well so that it can threaten the social relations

and harming consumers, even himself (Widodo et al.,

the Holy Quran,Al-Baqara verse 275

Hadith narrated by Tarmidzi

the Holy Quran, Surah Al-Maidah Verse 48

ICoSEEH 2019 - The Second International Conference on Social, Economy, Education, and Humanity

206

2016).

When referring to business competition according

to Islam where Islam sets the rules on commercial

activities that are intended to ensure that all of it is

done by honest, sincere and fruitful, then the exis-

tence of exceptions to the enactment business com-

petition laws in Indonesia in particular exceptions to

the small businessmen, according to the author it is

not efﬁcient in accordance with the principles of Is-

lamic economists. Islam does not regard honesty in

performing the activities sought only from the side

of certain trade alone, but every performer’s business

both large and small must run its business activities

honestly.

Unfair business competition prohibited by statute

is a competition not honest nor a competition con-

ducted by fraudulent means. So, the slightest fraud

committed by the perpetrators of the attempt was a

mistake that is contrary to the principles of Islamic

economy. When small businesses do the perpetra-

tors of fraudulent activities in running the competi-

tion, it will not be serious impact on a modal great

trade, but will harm small business principals, fellow

micro, what will consumer harm.

Exceptions to these small businessmen result area

operation Hawk Act number 5 Year 1999 less than

2% of all businessmen in Indonesia. This is because

the number of perpetrators of the small business that

does not include no more than 2% (Is, 2016). This

illustrates that 98% of businessmen in Indonesia are

the small businesses. With this ﬁgure, then it can be

imagined to be the moral impact of the trade that will

be incurred due to an exception by law that ultimately

98% of businessmen in Indonesia were not carrying

Islamic principles in the conduct of its business activ-

ities. Obviously this far removed from the lofty eco-

nomic goals of Pancasila.

The implementation of the economic system of

Pancasila as the ideology of Indonesia could not be

released from Islamic values. Mubyarto said that the

economic activity of Pancasila economy is regulated

in the Constitution 1945 need moral based on the de-

ity, humanity, nationalism, and democracy in achiev-

ing economic justice (Mubyarto, 1987). This means

that the principle of honesty in performing business

activities must be really accommodating in such a

way in a business competition law in the country.

The system of quality of family and economic

populist was actually a legal system which does not

merely rely on the rule of law, but rather paid atten-

tion on the rule of morals and the rule of justice. The

legal system is then seamlessly reciprocity in the eco-

nomic system of Pancasila. With the revolutionary

approach expected attainment of Vision 2030 Indone-

sia is based on and guided by a legal system which

accommodate the norms of life in the community i.e.,

customary law and Islamic law (Manan, 2014).

We should not forget that the main purpose of the

law is order and justice and the means of renewal in

society (Lili, 2007). Al-Arab in the dictionary it states

that: ”a thing that exists in the mind in a State of

honest is justice, any dishonest or not straight or not

worthy is regarded as unfair”. Ideas about right and

wrong implicit in the term adl because the term is of-

ten used in a broad sense including the values and re-

ligion (Santoso, 2012). According to Islamic system

any legal straight and in accordance with the law of

God has been just, this is the nature of religious con-

cepts. In the Islamic view on the balance of the world

that is governed by the Ordinance of God, justice is a

virtue where God provides the law he passes through

the Holy Quran. The principles of parity, middle ages,

States that bring the beauty of nature and kindness to

humans. According to Muslim doctrine, Justice rep-

resents both the basic purpose and the ultimate goal

of all divine revelation. He expresses in the levels:

The Justice of God to his creation and justice of man

among his fellow man (Santoso, 2012).

4 CONCLUSIONS

Islam strongly upholds honesty, sincerity and moral

perpetrator of effort in conducting its economic activ-

ities. Every business activity way hinders the unfair

business competition is contrary to the principles of

Islam. Not honest in doing business activities such as

doing unfair business competition can be performed

by each businessman both large and small business-

men. Therefore, it is wise to The Law of Repub-

lic Indonesia No. 5 Year 1999 on the prohibition of

Monopoly Practice and unfair business competition

business in Indonesia does not provide exceptions to

small business owner. Protecting small business of-

fender does not mean letting it run the business ac-

tivities in ways that are contrary to Islamic values, it

would be detrimental to society as a consumer.

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