Tuesday, 16 July 2019 | 05:38 WIB

SOE Minister Asks Airlines to Calculate Flight Cost Structure

Indonesia MInister of SOEs Rini Soemarno (special)

JAKARTA, NETRALNEWS.COM - Indonesia Minister of State-Owned Enterprises (SOE) Rini Soemarno has called on airlines to calculate their flight cost structure clearly, in relation to plans on reducing flight ticket prices.

"I have not received a report and we will discuss it only today. I always stress it to be calculated," Rini said in Jakarta on Friday (6/21/2019), responding to a meeting of Coordinating Minister for Economic Affairs Darmin Nasution, Minister of Transportation Budi Karya Sumadi and other stakeholders some time ago.

Therefore, she stressed that the calculation of these costs needs to be done in a transparent manner to all parties.

Rini said that as a national airline, Garuda Indonesia must prioritize aircraft safety and security.

"Including providing guarantees and continuing to maintain comfort and service to customers," she said as quoted by Antara.

Therefore, according to the Minister of Industry and Trade in the 2001-2004 Mutual Cooperation Cabinet, there must be a clear calculation of the structure of costs related to the cost of 30 percent, 40 percent or 50 percent.

She emphasized this to Garuda Indonesia as a state-owned airline in the country. In addition, aircraft maintenance must also be on time and the airline must provide the best for all.

"I just hope you can calculate everything," Rini said.

Previously, the Coordinating Ministry for Economic Affairs and the Ministry of Transportation and stakeholders set three policies related to the determination of low-cost airline ticket rates.

"The three policies were the first to reduce the price of domestic low cost carrier flights for certain flight schedules," said Darmin Nasution.

Second, to maintain the continuity of the air transport industry, all parties are committed together to reduce costs. The related parties in question are airlines, airport managers, Angkasa Pura 1, Angkasa Pura 2 and Pertamina.

The third point that has been determined is that the government is finalizing policies to provide fiscal incentives such as aircraft rental, maintenance and repair services.