A passenger hands over a bank note to a Grab car driver trough a plastic separator put in place to minimize risk of Covid-19 spread in Solo, Central Java last month. (Antara Photo/Maulana Surya)

Grab Seeks an Appeal Against Indonesia's Antitrust Decision


JULY 04, 2020

Jakarta. Solusi Transportasi Indonesia, the local operating arm of Southeast Asia ride-hailing giant Grab, plans to seek an appeal after the Indonesian antitrust body imposed $2 million fine on the company for breaching the country's antimonopoly law. 

The Business Competition Supervisory Commission (KPPU) found the company, which operates under Grab Indonesia trading name, and its car-rental partner Teknologi Pengangkutan Indonesia (TPI) guilty for discriminating against some independent drivers in Grab's ride-hailing platform. 

According to the decision, Grab Indonesia must pay Rp 30 billion ($2 million) in fine, the maximum amount in Indonesia antitrust law. KPPU also ordered TPI must also pay a fine of Rp 19 billion. 

"We regret that the KPPU has decided that Grab and TPI are guilty of alleged discrimination that benefits TPI driver-partners, despite all of the arguments and evidence supported by witnesses and experts Grab presented in the trials," Teddy Trianto, Grab Indonesia's regional counsel, said in a statement on Friday. 

KPPU open an investigation on Grab Indonesia in December 2018 after some Grab Indonesia's drivers in North Sumatra lodged complaints against the company. 

The drivers said Grab Indonesia prioritized drivers who rent cars from TPI in distributing the ride-hailing orders, and as a result, the drivers saw their income dropped. 

Grab Indonesia, however, denied the allegation. Teddy said its cooperation with TPI aimed to facilitate cost-effective car rental for driver-partners who want to earn an income but do not have the means to own a vehicle.

Teddy also said that it always promoted equal economic opportunities for all driver-partners through a booking system based on performance and achievement.

Grab Indonesia put a reward system in place for drivers who are consistently rated highly by passengers.

"Grab does not give preferential treatment to driver-partners who are registered with TPI," Teddy said. 

Under Indoensia'a antitrust law, Grab Indonesia has to submit an appeal to a district court 14 days after receiving KPPU decision. The court would have 30 days to decide on the appeal.