Transportation Ministry bows to KPPU decision on airfares

The Transportation Ministry will bow to what the Business Competition Supervisory Commission (KPPU) will decide after its investigation into the alleged airplane ticketing cartel. "I think it is the authority of the KPPU to investigate it and of course, we give the KPPU a chance to investigate it. We will bow to what KPPU will decide later on," Transportation Minister Budi Karya Sumadi said while inspecting the West Java International Airport in Kertajati sub-district, West Java, Saturday.

Earlier, KPPU urged all relevant parties including the Transportation Ministry and airline companies to clarify the issue of high airfares allegedly resulting from cartel practice in airplane ticket sales.

KPPU is an independent institution and that the government will comply with and follow up on its findings from the investigation, Sumadi said.

"Once again, as a regulator, the Transportation Ministry allows (KPPU) to conduct the investigation and we will bow to (its findings)," he said.

The government will hold a meeting at the Coordinating Ministry for Economic Affairs on the evening of Monday July 8, to decide the upper and lower limits of airfare, the minister said.

The government has made every effort to find a solution to the high airfares so that the airfares will not harm passengers and airlines, he said.

"Why do (we) involve the Coordinating Ministry for Economic Affairs? Because stakeholders in the airline industry are not only the Transportation Ministry but also state oil and gas company Pertamina and other state-owned companies," he said.