Proven Umrah Ticket Monopoly, Garuda Indonesia Fined KPPU Rp1 Billion

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JAKARTA - The Business Competition Supervisory Commission (KPPU) has imposed a fine of Rp. 1 billion on PT Garuda Indonesia (Persero) Tbk (GIAA). The reason is that the state-owned airline was proven to have practiced discriminatory practices related to the selection of partners selling Umrah tickets to and from Jeddah and Medina.

Head of the Public Relations and Cooperation Bureau, Deswin Nur said that Garuda Indonesia was proven to have violated Article 19 letter d of Law Number 5 of 1999 concerning the Prohibition of Monopolistic Practices and Unfair Business Competition.

"The conclusion was conveyed in the online decision-reading assembly session on July 8, 2021. For this violation, the GIAA was subject to a fine of Rp. 1 billion," he said in a written statement received by VOI, Thursday, July 8.

The fine, said Deswin, must be paid no later than 30 days after the decision has permanent legal force. If you are late in paying the fine, the GIAA may be subject to a late fee.

"Amounting to 2 percent per month of the value of the fine. In accordance with the provisions of Government Regulation Number 58 of 2020 concerning Management of Non-Tax State Revenue," he explained.

The case, which began with the public report, raised allegations of violation of Article 19 letter d of Law Number 5 of 1999, specifically 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.

"These entry barriers have an impact on most of the other Umrah Worship Travel organizers (PPIUs)," he said.

Deswin said the PPIU appointed by GIAA consisted of PT Smart Umrah (Kanomas Arci Wisata), PT Maktour (Makassar Toraja Tour), PT NRA (Nur Rima Al-Waali Tour), PT Wahana Mitra Usaha (Wahana), PT Aero Globe Indonesia, and PT Pesona Mozaik.

In the trial process, said Deswin, the Commission Council assessed GIAA's actions in appointing the six PPIUs as wholesalers without going through an open and transparent appointment process.

In fact, Deswin said, not based on clear and measurable requirements and considerations, as well as inconsistencies in the rationality of wholesaler appointments, proves the existence of GIAA discriminatory practices against at least 301 potential PPIUs in getting equal access in terms of bookkeeping and/or purchasing tickets for Middle East routes. GIAA's area (MEA) for the purpose of Umrah.

Deswin said the GIAA had proposed a change in behavior in September 2020 at the Preliminary Examination Assembly Session. However, because the GIAA did not fully implement the behavior change integrity pact given, the trial process was resumed.

In reading today's verdict, the Commission Assembly also considered GIAA's ability to pay based on the 2018 Financial Statements, 2019, and 2020.