Cassation Rejected By The Supreme Court, Garuda Indonesia Must Pay Fine Of IDR 1 Billion

Garuda Indonesia aircraft. (Photo: Wikimedia Commons)

JAKARTA - The Supreme Court of the Republic of Indonesia (MA) rejected the appeal of PT Garuda Indonesia (Persero). The decision strengthens the Business Competition Supervisory Commission (KPPU)'s decision on the discriminatory practice case of PT Garuda Indonesia (Persero) Tbk (GIAA) regarding the selection of partners for selling Umrah tickets to and from Jeddah and Medina.

Based on the information received, the case in the Supreme Court, in the Supreme Court Decision with register 561 K/Pdt.Sus-KPPU/2022 which was decided on March 9, 2022, the Supreme Court rejected the GIAA's appeal.

The Head of the KPPU's Public Relations and Cooperation Bureau, Deswin Nur, explained that with the Supreme Court's Decision, the KPPU's decision has permanent legal force, so that the GIAA is obliged to implement the decision.

"Especially the payment of a fine of IDR 1 billion to the state treasury no later than 30 days," he said in an official statement, Monday, March 21.

"If you are late in paying the fine, the GIAA may be subject to a late fine of 2 percent per month of the fine," he continued.

For your information, this case stems from public reports regarding alleged discriminatory practices by GIAA related to efforts to close access to the distribution channel for direct sales of Umrah tickets to and from Jeddah and Medina by GIAA through the Wholesaler Program.

In the report, the public and/or business actors feel disadvantaged and/or discriminated against due to GIAA's behavior which limits direct access to ticket purchases for the purpose of Umrah to only five business actors, even initially only to 3 (three) business actors.

The access restriction was carried out through the publication of GA INFO stating that starting March 1, 2019, the purchase of Middle East Area (MEA) tickets which is an Umrah route can only be made through five partners from GIAA.

In the trial, the KPPU considered that GIAA's action in appointing the six business actors as wholesalers without going through an open and transparent appointment process was not based on clear and measurable requirements and considerations, as well as inconsistencies in the rationality of wholesaler appointments.

KPPU also considers GIAA's action to prove discriminatory practices against at least 301 potential business actors in obtaining equal access.

The examination has been carried out by KPPU until the verdict is read in the KPPU Commission Assembly Session on July 8, 2021.

"The verdict basically states that GIAA has been legally and convincingly proven to have violated Article 19 letter d of Law Number 5 of 1999 and imposed a fine of Rp. 1 billion to GIAA," said Deswin.

However, at that time the GIAA filed a legal objection through the Central Jakarta Commercial Court on July 29, 2021, with Case Register Number 03/Pdt.Sus-KPPU/2021/PN Niaga Jkt Pst. This objection was then decided on December 3, 2021, with the order Rejecting the Application for Objection from the GIAA and defending the KPPU's Decision.

GIAA did not accept the decision of the Central Jakarta Commercial Court, so it filed a Cassation on January 3, 2022. Then it was decided by the Supreme Court on March 9, 2022, with the decision to reject the appeal.