The Central Jakarta District Court has revoked a decision by the Business Competition Supervisory Commission (KPPU) to impose fines amounting to Rp 585 billion (US$66.7 million) on nine local airlines for price fixing fuel surcharges.
The nine airlines were PT Garuda Indonesia, PT Sriwijaya Air, PT Merpati Nusantara Airlines, PT Mandala Airlines, PT Travel Express Aviation Service, PT Lion Mentari Airlines, PT Wings Airlines, PT Metro Batavia and PT Kartika Airlines.
The district court’s panel of judges ruled that many factors could keep the rate high like global oil price rallies and the currency rate and they determined price fixing was not necessarily involved. The panel also said the airlines purchased fuel from the same supplier, Pertamina, which explained why surcharge rates were relatively similar.