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Indonesian Highlights and Insights in News
Indonesian Highlights and Insights in News
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Government Forms Task Force To Lower Airfare Prices
Saturday, 02 Nov 2024
By deriz@insightinnews.com
The Ministry of State-Owned Enterprises (BUMN), the Ministry of Tourism, and the Ministry of Transportation will create a special team to enhance national tourism. This was announced by BUMN Minister Erick Thohir after a meeting with the relevant ministers.
Erick explained that the establishment of this task force is part of a cross-ministerial collaboration. The task force will align all tourism-related policies to provide ideal solutions, including addressing the high prices of domestic flight tickets.
"We will form a joint team to find solutions," Erick stated in Jakarta on Thursday (October 31, 2024).
He mentioned that the cooperation among ministries aligns with the directive from President Prabowo Subianto in Magelang.
"Hopefully, within 1-2 weeks, the team will be formed and will start reviewing all policies or their derivatives for effective implementation," he added.
The high cost of flight tickets in Indonesia has drawn special attention from the Business Competition Supervisory Commission (KPPU). The commission revealed several factors contributing to the unaffordability of flight tickets for the public.
KPPU member Budi Joyo Santoso pointed out that factors such as the high price of aviation fuel, a monopolized distribution system, tax components, and business practices contribute to the expensive airline tickets.
However, Minister of Energy and Mineral Resources Bahlil Lahadalia refuted claims that aviation fuel prices in Indonesia are the highest in Southeast Asia (ASEAN).
Bahlil's statement was supported by PT Pertamina Patra Niaga, a subsidiary of PT Pertamina (Persero). Pertamina confirmed that aviation fuel prices are competitive and comply with existing regulations in Indonesia.
"The published price of aviation fuel in Indonesia is considered quite competitive. Pertamina's published aviation fuel prices are comparable and even lower than others." The competitive price of Pertamina's avtur publication is equal to or lower than the published price per liter in countries with similar geographical landscapes, said Corporate Secretary Heppy Wulansari in early September.
