KPPU Lion Air Group fines Rp. 3 billion

Rancakmedia.com - The Business Competition Supervisory Commission (KPPU) has decided that it can be proven that the Lion Air group of companies has carried out market discriminatory practices related to cooperation in the marketing of transportation service capabilities at a number of airports in Indonesia.

This happened at Hang Nadim Airport, Soekarno-Hatta Airport, Halim Perdanakusuma Airport, Juanda Airport and Kualanamu Airport.

KPPU fined Rp 1 billion to three airlines that joined the Lion Air Group. Based on PT Lion Mentari, PT Batik Air Indonesia and PT Lion Kilat.

Overall, KPPU imposed a fine of Rp. 3 billion on Lion Air Group, said the statement received by KPPU, Monday (29 March 2021).

However, considering the various reasons based on the cooperative character of the investigation, the negative impact of the epidemic, and the evidence that the agreement was over, the KPPU has decided that fines are not needed.

The provisions are that Lion Air Group does not commit the same violation within a year, because the decision has permanent legal force.

The case involving Lion Air was due to the stockpiling of goods to postal expeditions that occurred at Batam's Hang Nadim airport from July to September 2018.

The results of the interrogation found evidence that there was a cooperation agreement between PT Lion Mentari, PT Batik Air Indonesia and PT Wings Kekal as commercial airline actors operating in the transportation service sector.

PT Lion Kilat is now a service for transporting parcels to be picked up and documents throughout Indonesia using Lion Air Group flights.

In this collaboration, KPPU decided that PT Lion Kilat has limited rights or exclusivity to use expeditions having 40 tons per day for 4 approved flight routes.

This operation was apparently over and made it difficult for transport agents who were registered as legal agents except for PT Lion Kilat to have access to the transportation of goods.

Based on various trial evidences, the Commission Council finally decided that PT Lion Mentari, PT Batik Air Indonesia and PT Lion Kilat can be proven legally and provide conviction that they have violated Article 19 (d) of Law Number 5 of 2005. 1999 regarding the prohibition of violating monopoly practices and business competition. Unhealthy,” noted the CPPU.

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