Overview

Comprising more than 17,000 islands, Indonesia is the largest archipelagic country in the world.[1] As a result of its unique geography, air transportation plays a pivotal role in ensuring connectivity among the Indonesian population.[2] Unfortunately, Indonesia’s aviation industry is still prone to unfair business competition.

Almost a decade ago, back in 2010, Indonesia’s Business Competition Supervisory Commission (Komisi Pengawas Persaingan Usaha – “KPPU”) investigated and presided over a cartel case involving fuel surcharge pricing imposed by nine large players within the Indonesian aviation industry.[3] Since then, various allegations have emerged which suggest an ongoing tendency towards unfair business practices within the industry. The most recent of these involves a conflict which has emerged between AirAsia and the country’s largest online travel agents.