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Business watchdog probes alleged price fixing following airfare increases
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The Business Competition Supervisory Commission (KPPU) building in Jakarta. (Kontan/Daniel Prabowo)
The Business Competition Supervisory Commission (KPPU) is investigating alleged price fixing behind airfare increases.
“We are investigating the issue because we could not rely on information from the media,” said KPPU commissioner Guntur Syahputra Saragih as quoted by tempo.co on Monday.
Dozens of people protested the price increase on Dec.20-Jan.11 by signing an online petition. The Indonesia National Air Carrier Association (INACA) agreed to reduce prices following the complaints.
However, many are not dissatisfied with the price cut because it did not take into account several taxes -- passenger service charges, safety charge and insurance.
Senior economist Faisal Basri previously called on the KPPU to look into possible collusion among airlines behind the high ticket prices. “It is strange that they could make the prices go up and down together,” he said on Jan. 15.
Guntur, however, could not say when the results of the KPPU investigation would revealed, but said the commission had started to send letters to airlines. “We have sent a number of letters, but we are unable to explain the details,” he added.
Transportation Minister Budi Karya Sumadi said the KPPU had the authority to carry out an investigation, but he did not believe price fixing took place.
Another KPPU commissioner, Afif Hasbullah, said the commission needed to look into the issue thoroughly. “It is only an indication. If we find facts and data, we could investigate the issue further,” he added.(bbn)
