Angkasa Pura Logistics Penalised for Exercising its Monopoly Power.

Jakarta (14/6) – Indonesia competition commission, KPPU, has imposed penalty amounting IDR 6.5 billion to PT. Angkasa Pura Logistik, for their monopoly practices (Article 17.1 and 17.2) at a Decision Announcement on Case No. 08/KPPU-L/2016 on Wednesday, 14 June 2017.

Present as the Commissioner Case Council was Dr. Sukarmi (Chairperson of the Case Council), and Dr. Chandra Setiawan, and Kamser Lumbanradja as Member of the Case Council.

At the announcement, PT Angkasa Pura Logistic is proved to exercise its monopoly power at Cargo Terminal in Sultan Hasanuddin International Airport in Makassar, South Sulawesi, specifically by imposing a double charge on its logistic services to the consumers. The company is proved to violated Article 17.1 and 17.2 (on monopoly practices) of Indonesian competition law, the Law No. 5/1999.

The case was started in 2016, where the Reported Enterprise is suspected of exercising its monopoly power by imposing double charge to the consumer of two similar services its provided. The double charged services are the Regulated Agent Fee (for IDR 550/kg), and Air Post and Cargo Service Fee (for IDR 500/kg). Both activities provided consider similar to one another. This double charge considers not comply with mandate assigned by the Government under Transportation Minister Decree No. 15/2010 on Blueprint on Inter-mode Transportation 2010-2030. In addition, the double charge has not provided the consumer the performance or additional services resulting from such double cost.

Following the Decision, Commissioner Sukarmi said,
“Airline cargo expedition (EMPU) or other shippers only can gain access up to Area 2 of the Sultan Hasanuddin Airport, while  PT Angkasa Pura Logistik can gain access to Area 1 at the airport. It means that PT Angkasa Pura Logistik can get their cargo faster than other EMPU, since they are a Cargo Terminal Operator and stationed at Area 1.”

Sukarmi also adds that, PT Angkasa Pura Logistik imposed a double charge when act as Regulated Agent.

“Since June to December 2015, total production for outgoing domestic at Sultan Hasanuddin Airport reach 12,064,102 kg, while the outgoing international reach 4,112,586 kg.”

Following the Decision, KPPU also proposed a recommendation to the Government in form of the following:

1. To the Ministry of Transportation to conduct an evaluation on Transportation Minister Regulation No. 153/2015 which contrast to the Law No. 1/2009 on the determination of tariff.
2. To the Ministry of Transportation to impose a sanction to PT Angkasa Pura I who believed to intentionally transfer its authority to PT Angkasa Pura Logistik, and breach Article 223.3 of the Law No. 1/2009.
3. To Ministry of Transportation, Ministry of SOE, along with Airport Authority to provide rules and regulations, as well as performs an effective monitoring on the implementation of Regulated Agent in all airports across Indonesia, to guarantee safety, security, and flight services which comply to the fair competition principle.

“There was consumer losses, where the consumer was imposed with a double tariff, even though the activity by the Regulated Agency and Cargo Terminal was similar”.