he government has said that it will allocate a Rp 21 billion (US$1.5 million) subsidy from this year's state budget for the pilot project of the air highway program in a bid to reduce price disparity, especially in Papua.
The pilot project of air highway, which is targeted to start in the first semester this year, is awaiting the revision of the presidential regulation on maritime highway no. 106/2015 on pre-existing maritime highway programs or subsidized scheduled freightliner services to remote areas.
The revision is to include the air highway scheme.
"The presidential regulation is still being discussed by the Coordinating Maritime Affairs Ministry. I have been following the process in the ministry," Transportation Ministry air transportation director Maryati Karma said on Wednesday.
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She added the first pilot project for the air highway will see a scheduled air freight service connecting three cities in Papua, including Timika, Wamena and Dekai, and surrounding areas.
Maryati said the pilot project was important to ensure efficiency.
The government has previously stated that they would merge the scheduled air freight with the maritime highway and state shipping operator Pelni flying six routes. (bbn)
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