11 October 2016

Indonesia Urged to Combat Logistics, Transportation Sector Monopolies

Indonesia needs to take measures to combat state-owned enterprise monopolies in the logistics and transportation sectors to create a healthy business climate, the Indonesian Logistics and Forwarders Association (ALFI) has said.

ALFI chairman Yukki Nugrahawan Hanafi said Monday in Tangerang, Banten, that state airport operator Angkasa Pura and state port operator Pelindo had started to provide logistics services, which did not fall under their purview.

Angkasa Pura I, for example, had established a logistics subsidiary, namely Angkasa Pura Logistik, Yukki said.

"The impact is huge. In ALFI alone, there are 3,612 logistic companies that might be affected by this action," Yukki said, adding that existing unfair competition regulations had yet to stop the cartels.

Business Competition Supervisory Agency (KPPU) head Syarkawi Rauf acknowledged that the Rp 25 billion (US$1.9 million) fine had not been able to halt monopoly practices in Indonesia.

"To create a deterrent effect, we shall impose a fine bigger than Rp 25 billion. It might be up to 50 percent of the cartel's revenue," Syarkawi said.

Source: http://www.thejakartapost.com/news/2016/07/26/indonesia-urged-to-combat-logistics-transportation-sector-monopolies.html