KPPU Summons Garuda CEO to Talk Cartel Allegations
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1 July 2019 12:16 WIB
TEMPO.CO, Jakarta - The Business Competition Supervisory Commission (KPPU) have been investigating allegations of price-fixing by Garuda Indonesia Group and Lion Air Group. They now plan to summon Garuda Indonesia CEO Ari Askhara to today, July 1.
KPPU commissioner and spokesman Guntur Syahputra Saragih said they will question Ari about the airline's structure of directors after they established operating partnership with Sriwijaya Air.
"We will ask him about the multiple positions," Guntur told Tempo, Monday.
The KPPU is investigating three cartel issues; ticket prices, cargo tariff, and multiple positions at the companies after Garuda established cooperation with Sriwijaya Air. A number of Garuda directors are suspected of having the same position in Sriwijaya Air, which is prohibited by law because their cooperation is not a merger.
According to the KPPU, the double position practice—if proven—can trigger monopoly.
The KPPU, Guntur confirmed, will also question Garuda Indonesia about the allegations of cartel practices in determining domestic economy tariffs and cargo tariffs.
FRANCISCA CHRISTY ROSANA
