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Airlines: Pertamina Should Not Be Allowed to Monopolize Jet Fuel

2 October 2014 16:58 WIB

Bahan bakar pesawat Avtur. ANTARA FOTO

TEMPO.CO, Jakarta - Indonesian National Air Carriers Association (INACA) is questioning Pertamina's monopoly on jet fuel. "Businesses should have a choice and monopolistic practices should be discouraged," said INACA's Head of Public Relations Benny Butarbutar to Tempo on Thursday, October 2, 2014.

According to Benny, there are currently no other jet fuel provider other than Pertamina in Indonesia, despite the fact that plenty of providers have expressed their interest to meet the needs of domestic air service providers. "If the government can maintain a friendly business atmosphere as well as complete infrastructure, providers will flock in to meet domestic demands," said Benny.

The Business Competition Supervisory Commission (KPPU) is investigating the cause behind Pertamina's high jet fuel prices, which is causing operating costs of airliners to soar.

KPPU's Director of Policy Advocacy and Review Taufik Ahmad said that his agency became aware of the high prices through media reports. "We will find out why Pertamina's prices are so high, whether it is due to its monopoly or other causes," said Taufik at his office on Monday, September 29, 2014.

To date, KPPU has summoned representatives from INACA and Pertamina to give their testimonies on the matter. "We plan to summon the Downstream Oil and Gas Regulatory Agency [BPH Migas] very soon," said Taufik.

Previously, INACA's Chairman Arif Wibowo said that the jet fuel prices in Indonesia is the highest in the Association of South East Asian Nation (ASEAN). Indonesian flag carrier Garuda Indonesia has also complained along the same line.

As a result, the Minister for State-owned Enterprises Dahlan Iskan has permitted Garuda to buy jet fuel from other providers. "If Pertamina's jetfuel is too expensive for Garuda, they can seek to purchase through other means," said Dahlan on September 18, 2014.

MARIA YUNIAR | HUSSEIN ABRI YUSUF



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