KPPU Lion Air Group fined IDR 3 billion

Lovata Andrean

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Free Wild 1

Rancakmedia.com – The Business Competition Supervisory Commission (KPPU) has decided that the Lion Air group of companies has been proven to have carried out market discrimination practices regarding cooperation in marketing 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 imposed a fine of IDR 1 billion on three airlines that joined the Lion Air Group. Based on PT Lion Mentari, PT Batik Air Indonesia and PT Lion Kilat.

In total, the KPPU imposed a fine of IDR 3 billion on the Lion Air Group, according to the confession received by the KPPU, Monday (29 March 2021).

However, by considering various reasons based on the cooperative character of the investigation, the negative impact of the outbreak, and proof that the agreement had been completed, the KPPU decided that a fine was not necessary.

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

The case involving Lion Air is due to the expedition's hoarding of goods to post that occurred at Hang Nadim Airport in Batam during the period 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 aviation actors operating in the transportation services sector.

PT Lion Kilat is now a service for transporting packaged goods and documents throughout Indonesia using Lion Air Group flights.

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

This operation apparently ended and made it difficult for transport agents registered as legal agents except PT Lion Kilat to have access to transport goods.

Based on various trial evidence, the Commission Council finally decided if PT Lion Mentari, PT Batik Air Indonesia and PT Lion Kilat can be proven legally and provide confidence that they violated Article 19 (d) of Law Number 5 of 2005. 1999 concerning the prohibition of violating monopolistic practices and business competition. Not Healthy,” noted the CPPU.

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Lovata Andrean

Hi, I'm Lovata, I'm not Ai but I am a content writer for SEO, Technology, Finance, Travel, Cooking Recipes and others. I hope this can be useful for all my friends. Thanks