TEMPO.CO, Jakarta - The Business Competition Supervisory Commission (KPPU) has thrown its weight behind President Joko “Jokowi” Widodo’s decision to allow foreign airlines to operate in the country. KPPU commissioner Afif Hasbullah said the decision was the right move to safeguard the condition of Indonesia's aviation market.
“Allowing [the operations of] foreign airlines is surely the government’s domain. We support however it will be regulated,” he said on Thursday, June 13.
Afif said the arrivals of foreign airlines in the country would create a healthier business competition. However, he reminded business players to refrain from any conspiracy to set their airfares so as to keep them at a normal rate.
“The more the business players, the better. What’s important is that business players, who should be independent, should not coordinate among themselves to control prices,” said Afif.
He revealed that the Indonesian aviation industry was currently in a duopoly with two major air carriers—Garuda Indonesia Group and Lion Air— controlling the domestic aviation industry. The market that is controlled by the two giants is said to have heavily affected pricing in the industry.
President Jokowi previously expressed his idea of introducing new companies in the competition as a solution to curb the soaring airfares.
FRANCISCA CHRISTY ROSANA