Thursday, 29 October 2020 | 15:46 WIB

Gov’t Set to Re-Regulate Airline Ticket Tariff Limits

Gov't Set to Re-Regulate Airline Ticket Tariff Limits (99acres)

JAKARTA, NETRALNEWS.COM - The government feels the difficulties experienced by the public regarding the price of airplane tickets that are increasing than usual, which has even from before this Ramadan. The government does not remain silent to overcome this problem.

Coordinating Minister for Economic Affairs Darmin Nasution felt that high airline ticket prices had disturbed the transportation user community. Especially facing the homecoming season, when people need certainty about the price of airline tickets to be affordable by them.

Therefore, according to the Coordinating Minister for the Economy, the government intervened to overcome this problem. Because, for something that concerns the benefit of the wider community, it cannot be dominated by business and market matters.

For this reason, Coordinating Minister for Economy Darmin Nasution instructed the relevant ministries, in this case the Ministry of Transportation, to rearrange the upper and lower limits of the price of airline tickets.

"We must understand the market structure and take policies based on this," Darmin said, at the Airplane Ticket Policy Coordination Meeting, at the office of the Coordinating Ministry for Economic Affairs, Jakarta, Monday (6/52019).

The Minister of State-Owned Enterprises (SOE) Rini M Soemarno who was also present at the coordination meeting revealed that her party was always trying to maintain the health of all state-owned companies, including Garuda Indonesia. However, on the other hand she still supports the government's decision as a regulator if it wants to change the upper limit of airplane ticket prices.

Meanwhile, Minister of Transportation Budi Karya Sumadi agreed that if the specific upper limit of the economic class was changed so that it would not be too burdensome to the community. However, the Ministry of Transportation needs time to conduct public consultations on this matter.

"I will set in retail what is the upper limit of the new one, but this depends on the price of aviation fuel, too," said the Minister of Transportation.

Since starting May 2019, Indonesia has been able to produce its own avtur, the Minister of BUMN will open the cost structure of avtur to the airlines after consulting Pertamina. From there it is expected to help lower the price of airline tickets.

The Coordinating Ministry for Economic Affairs will again hold a coordination meeting to discuss this further, after the design of the limit on the price of the new airline ticket is determined. The hope is that there will be brightness in the community about airline ticket prices.