Jakarta – Indonesia’s Business Competition Supervisory Commission (KPPU) has decided to raise the status of the alleged monopoly on parking transactions involving Ovo and PT Sky Parking Utama from an inquiry to an investigation. Commissioner of Indonesia’s competition watchdog, Guntur Saragih, said that the commission had uncovered a number of findings from investigators through field research and observation. “We decided to go up to the level of investigation,” said Guntur in Jakarta, Thursday, February 13, 2020.
KPPU’s Director of Investigation, Goprera Panggabean, said that until now, PT Sky Parking Utama has managed 81 parking locations in variousbuildings owned by Indonesia’s conglomerate Lippo Group, who is also Ovo’s investor. Ride-hailing company Grab has also invested in Ovo. During the inquiry, KPPU found that PT Sky Parking Utama had allegedly committed discrimination by only allowing Ovo to be used as digital payment method in their managed parking lots.
Such parking payment is assumed to be inconvenient for visitors because most consumers only have chip-based payment instruments, and such instruments were invalid or unusable in parking lots managed by PT Sky Parking Utama.
According to Gopera, the collaboration between PT Sky Parking Utama and Ovo continues until today although the company has provided the opportunity to cooperate with other payment instruments. “Their cooperation is solid and continuing. However, when our research was conducted we noticed that they have made some changes. They now have opened the opportunities for other payment instruments,” he said.
The issue of monopoly is regulated by business competition law through Indonesia’s Law Number 5 of 1999 concerning Prohibition on Monopolistic Practices and Unfair Business Competition. The regulation states that entrepreneurs are prohibited from making agreements that can prevent other entrepreneurs from doing the same business. This applies to businesses with foreign and domestic target markets.
When the Commission began looking into this case last year, Head of Ovo’s Public Relations, Sinta Setyaningsih said that she has not received any information concerning summons by the KPPU Previously, the Commission has stated its plan to call Ovo regarding the alleged parking monopoly practices.
“I haven’t received any information so far,” Sinta said in a short message to Tempo, Tuesday, July 2, 2019. “Until today, Ovo itself hasn’t made any contact with the KPPU regarding the case.”