One of the forms of the Indonesian government’s policy in realizing the principle of Economic Democracy is by enacting Law Number 5 Year 1999 regarding The Prohibition of Monopolistic Practices and Unfair Business Competition (“Law 5/1999”). Law 5/1999 prohibits several activities which could distort the competition in the market, one of which is the abuse of dominant position in the market by business actors. This research analyzes the purposes of and legal consequences for business actors which commit predatory pricing. Other than that, this research also studies the appropriateness of the regulatory placement of predatory pricing regulation within Law 5/1999. The research method used is the juridical normative (qualitative) research. This research studies the process of predatory pricing before afterwards studying the purposes of business actors in committing predatory pricing. The legal consequences for actors which commit predatory pricing is studied by understanding the penal regulation which applies within Law 5/1999. Further, the appropriateness of the current regulatory placement of the prohibition on predatory pricing within Law 5/1999 is also studied by understanding the concept of dominant position. This research finds that business actors which commit predatory pricing aims to eliminate their competitors from the market and afterwards setting an extremely high price above the reasonable price. Business actors proven to commit predatory pricing will receive sanctions based on Articles 47 – 49 of Law 5/1999. The current regulatory placement of the prohibition on predatory pricing within Law 5/1999 is deemed inappropriate as it does not place predatory pricing activity as an integral part of the abuse of dominant position practices i the market, when in practice, only dominant business actors in the market can commit predatory pricing. Based on this research, it is recommended that the government provides a socialization for the society in regards to predatory pricing activities which is still relatively rare among the society, as well as revising the regulatory placement of the prohibition on predatory pricing within Law 5/1999 so that it is regulated within the chapter on Dominant Position.