KPPU suspects oligopoly in cargo scanning

The Business Competition Supervisory Commission (KPPU) says it suspects that the recent establishment of a new cargo security system at Soekarno-Hatta airport comprises an oligopoly.

“We suspect there is an oligopoly,” KPPU chairman Benny Pasaribu said Thursday as quoted by Tribunnews.com, prior to a meeting with several cargo business associations, in Jakarta.

Several associations attended the meeting, including Indonesian Express Delivery Services (Asperindo) and Indonesia National Air Carriers Association (INACA).

He said there was an indication that the government had allowed three private companies to operate the system without any supervision.

He added he would seek explanations and evidence from all stakeholders, including cargo expedition companies and airline companies.

Hundreds of cargo shipment stakeholders of Asperindo, including truck drivers, freight handlers and shipping company executives rallied on Tuesday at the Soekarno-Hatta International Airport storage complex in Tangerang to protest the establishment of the new system, which has increased the cost of cargo inspection. (rpt)