Garuda repudiates KPPU charge<\/p>\n
Evi Mariani
\nThe Jakarta Post
\nJakarta<\/p>\n
National flag carrier PT Garuda Indonesia has repudiated the
\nconclusion drawn by the country's antimonopoly watchdog, which
\ndeclared the airline had broken the Antimonopoly Law.<\/p>\n
\"PT Garuda Indonesia submitted a letter to the Central Jakarta
\nDistrict Court repudiating the KPPU's conclusion,\" Garuda's
\nspokesperson Pujobroto said in a press statement made available
\non Thursday, referring to the Business Competition Supervisory
\nCommission (KPPU).<\/p>\n
Earlier, the KPPU had announced that Garuda was found to have
\nviolated the Antimonopoly and Unfair Competition Law, and that
\nthe airline should pay a Rp 1 billion (US$117,600) fine.<\/p>\n
The conclusion was reached after the agency conducted a probe
\nfollowing a complaint filed by an anonymous computerized
\nreservation system (CRS) provider.<\/p>\n
The CRS provider accused Garuda of hampering fair competition
\nin the domestic ticket reservation business through an exclusive
\nagreement with its subsidiary, PT Abacus Indonesia, which
\nsupplies an international CRS called Abacus.<\/p>\n
In the press statement, Pujobroto explained that the carrier
\nhad used the Abacus system since 1995, when it was the only CRS
\navailable in the country.<\/p>\n
Garuda also deemed the partnership with Abacus an efficiency
\nmeasure, he said.<\/p>\n
Garuda retorted the KPPU's conclusion, saying that the carrier
\nwas \"a CRS consumer\", and thus had the right to choose a CRS
\nprovider that offered the most competitive price and quality.<\/p>\n
The Antimonopoly Law passed in 1999 stipulates that a business
\nmay not make deals with an aim to control production or services,
\nwhich results in unfair competition and\/or violates consumers'
\nrights.<\/p>\n
The KPPU, which was established under the same law, has the
\nauthority to investigate businesses suspected of employing unfair
\nbusiness practices and impose sanctions on them.<\/p>\n
The KPPU suffered a blow last year in its efforts to maintain
\nfair competition in the country's business sector when a court
\noverturned its decision against a number of parties allegedly
\ninvolved in irregularities in the sale of the government's 72
\npercent stake in car maker PT Indomobil.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/garuda-repudiates-kppu-charge-1447893297",
"image": ""
},
"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
}