Supreme Court Upholds Decision of ICC on Umrah Case Involving Garuda Indonesia.

Thursday, May 19, 2022

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Jakarta (21/3) – The Supreme Court of the Republic of Indonesia (MA) has upheld Decision of ICC on the discriminatory practice case of PT. Garuda Indonesia (Persero) Tbk. (GIAA) with regard to the selection of partners for the sales of umrah tickets to and from Jeddah and Medina. Based on the information on the said case at the Supreme Court, the Decision of the Supreme Court under register number 561 K/Pdt.Sus-KPPU/2022 that was decided on March 9, 2022, the Supreme Court has turned down  the cassation filed by GIAA. Upon the existence of such Supreme Court Decision, then Decision of ICC has had a permanent legal force, hence, GIAA is obligated to implement the Decision. Specifically for the payment of the fine of IDR1,000,000,000.00 (one billion rupiah), it must be made to the state treasury by no later than 30 (thirty) days. In the event of delay of the payment of the fine, GIAA can be subject to a delayed fine of 2% (two percent) per month of the value of the penalty.

This case stemmed from reports made by the public regarding an alleged discriminatory practices perpetrated by GIAA pertaining to the efforts made to close accesses to the distribution channel for direct sales of umrah tickets to and from Jeddah and Medina by GIAA through its Wholesaler Program. The reports say that the public and/or business actors feel harmed and/or discriminated because of the behavior of GIAA limiting direct access to purchasing tickets for umrah purposes to merely 5 (five) business actors, even initially to merely 3 (three) business actors. Such access restriction has been conducted through the publication of the GA INFO declaring that as from March 1, 2019, the purchases of Middle East Area (MEA) tickets constituting the umrah routes can only be made through the 5 (five) partners of GIAA.

The Commission Panel judges in the hearing that the action of GIAA in appointing the six business actors as wholesalers without undergoing an open and transparent appointment process, has not been based yet on clear and measurable requirements and considerations. The existence of inconsistencies in the rationality for the appointment of the wholesalers has proved the existence of discriminatory practices perpetrated by GIAA against at least 301 (three hundred and one) potential business actors in obtaining the same access. ICC has conducted some examinations up to the reading out of the Decision in a Commission Panel Hearing of ICC that was held on July 8, 2021. The Decision basically declares that GIAA has been legally and convincingly proven to have violated Article 19 sub-article d of Law Number 5 Year 1999 and a fine amounting to IDR1,000,000.000 (one billion rupiah) was imposed on GIAA.

GIAA filed a remedy in the form of objection to the Central Jakarta Commercial Court on July 29, 2021 under Case Register Number 03/Pdt.Sus-KPPU/2021/PN Niaga Jkt Pst. This objection was then decided on December 3, 2021 with the command of the decision Turning Down the Objection Request lodged by GIAA and defending the Decision of ICC. GIAA did not accept the decision of the Central Jakarta Commercial Court, hence, it filed a Cassation on January 3, 2022. The Supreme Court then decided on March 9, 2022 with a command of the decision TURNING DOWN such Cassation Request.