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    KPPU Unveils 3 Important Cases in Indonesia

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    BANDUNG-The Business Competition Supervisory Commission (KPPU) at its 17th Anniversary has successfully uncovered the case of three important sectors in Indonesia covering telecommunication industry, air transportation industry, and food sector.

    Chairman of KPPU, Syarkawi Rauf, explained, in 2008 in telecommunications industry his side sanctioned to 6 telecommunication operators in Indonesia. The reason, they have conducted a cartel about the setting of SMS rates.

    "At that time, the tariff of SMS between operators was Rp250 - Rp350 / sms, we asked the 6 operators to stop the cartel, finally the telecommunication tariff fell to Rp100 / sms," he explained to media crew in Bandung on Thursday Night (1/6/2017).

    According to him, there is a saving income made by mobile phone consumers around Rp 200-250 / sms. If the tariff is multiplied by millions of consumers then on the count of the 4th year amounts to Rp 28 trillion.

    "If this is multiplied by the number of million consumers or mobile phone users in Indonesia, the number could reach tens of trillions and indeed our calculation for 4 years cartel period has reached Rp 28 trillion that can be saved," he said.

    The KPPU also encouraged the government to open a new air transportation industry. As it is known, the number of airline operators is only 3 companies.

    "We encourage the government to open the air transportation industry for new players, and then enter Lion Air, Adam Air, Batik Air and so on," he said.

    According to him, with the entry of new air transportation companies in Indonesia triggered an increase in the number of airline ticket buyers in Indonesia.

    "In the past, less than 10 million air ticket purchasers have now reached 90 million ticket subscribers per year, which means there is a growth in ticket purchases in Indonesia due to the widely opened market," he said.

    Syarkawi assess the condition is not optimal because when compared with other countries, such as in the United States, the number has reached 1.1 billion ticket buyers.

    "In fact, the population is only 330 million, meaning that 1 American buys 3 flights per year," he added.

    If the condition is applied in Indonesia, the population of 220 million means at least 759 million in the future.

    "From the current position is still 90 million so there is still a wide open market," he said

    In addition, in the food sector, KPPU has conducted supervisory measures such as in cooking oil, garlic, beef, and chicken meat.

    "On June 6, 2017 we were 17 year old. Many of us have done and probably still have not done much, and now we are raising our research status to investigate the cartel in this garlic," he concluded.

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