KPPU Calls Gov't to Not Intervene Airlines Tariff



Laila Afifa

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    TEMPO.CO, Jakarta - The Business Competition Supervisory Commission (KPPU) is pushing for the Indonesian government, through the Transportation Ministry, to hold back from intervening airlines tariff.

    KPPU Commissioner Guntur Saragih argues that market mechanism should decide the airfares.

    “When the government asks to lower prices, it should rely on the market mechanism, so there’s no need for such pressure,” said Guntur at the KPPU headquarters on Tuesday, April 23.

    He said that the KPPU does not focus its effort on deciding airfares since the Law mandates the commission to oversee the partnership between airline businesses and how they set airfares.

    Guntur’s statement contradicts to what the Transportation Minister has done by announcing it would impose new sets of regulations to drop airfares nearing the Ramadan holiday. Transportation Minister Budi Karya explained that he would talk about its details in the next couple of days.

    “We will find a solution. Whether we set a sub-price or lower the upper cap. Depending on which is possible to do and legal,” said the Minister at the State Palace on Monday, April 22.


    Read: Transport Ministry: Minimum, Maximum Airfares Unchanged