Thursday, July 23, 2020

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ICC asks the new President Director of PT. Kereta Api Indonesia (PT. KAI), the Indonesia’s State Owned Enterprises on Train Services, to prioritize fair business competition in business cooperation of the company he leads with various types of business actors. Such effort is specifically aimed at providing equal opportunities for non-State-Owned Enterprises (SOEs) business actors so as to be able to cooperate with PT. KAI.

The request was conveyed by ICC with regard to the policy of PT. KAI to use LinkAja digital wallet as the only method of payment at KAI Access for the booking of train service tickets for certain regions/local trains (Local Trains). The policy issued by PT. KAI on September 1, 2019 mentioned that Local Train ticket booking services can only be done online through the KAI Access application and through payments using LinkAja. Meanwhile, sales at station counters only apply to in person purchases, namely commencing 3 hours prior to the departure schedule. This is different from the sales of long-distance (inter-city) train tickets which open various payment options such as payment points, retail outlets, credit/debit cards, and ATM/Mobile Banking/Internet Banking. KAI should be more open and should provide plenty of methods of payment for all its services. Specifically considering that trains constitute one of the vital and strategic branches of production in economic activities, so, it is a must to give top priority to the optimization of the function of public services.

For our information, LinkAja is an electronic payment company under the patronage of PT. Fintek Karya Nusantara (Finarya) the shares of which are owned by various companies in the form of SOEs, including PT. KAI. Considering the number of users of the KAI Access which reaches 3.8 million users, such monopoly of payments of LinkAja surely constitutes a form of discriminatory business treatment by PT. KAI against other business actors of digital wallet business providers, such as OVO, GoPay, Dana, and the like, and therefore has a potential of harming the public.

ICC alleges that business cooperation established by PT. KAI and LinkAja is related to the spirit of synergy of SOEs, including the synergy with the subsidiaries of SOEs and the affiliates thereof. According to ICC, the synergy of SOEs is truly important, especially to enhance the access or benefits of the company to the public. However, business actors in the form of non-SOEs, in the business or commercial aspect, must still be given the same opportunity to compete with SOEs and co-contribute to the provision of public goods and services, particularly those related to the lines of business of PT. KAI, namely train transportation services in Indonesia.