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Govt delays policy to subsidize air transport
Citing the lack of a regulatory framework, the government has yet to commence its so-called air bridge program, hampering a move to reduce the price disparity between major cities and remote areas in eastern provinces, particularly Papua
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iting the lack of a regulatory framework, the government has yet to commence its so-called air bridge program, hampering a move to reduce the price disparity between major cities and remote areas in eastern provinces, particularly Papua.
The air bridge program will provide air freight subsidies to distribute staple goods to remote and mountainous areas that lack land infrastructure. It was initially expected to start in April this year.
Head of the sub-directorate of non-scheduled commercial air transportation at the Transportation Ministry, Ubaedillah, said while the program was still in the bidding process to find suitable airlines to fly the routes, the ministry was still waiting for more regulations from other ministries in order for the program to work in an accountable way.
“The program has not started. We are still waiting for the [legal basis] for the types of goods that will be transported,” he said on Tuesday.
Presidential regulation no. 70/2017 on cargo freight to remote and border areas, was already issued in July along with several implementing regulations from the Transportation Ministry. But a regulation from the Trade Ministry is still needed to specify the type of goods that can be transported with the subsidized freights.
“I’d rather not start at all than run the program without the regulation [to back it up],” Ubaedillah said, adding that the ministry had earmarked Rp 41 billion (US$3 million) from the state budget this year for the subsidy.
A planned pilot program is slated to connect three cities in Papua, Dekai, Timika and Wamena, with the remote cities of Enggolok, Mamit, Mugi and Mapenduma, also in Papua. Next year, the air cargo will connect several cities in Papua with cities in South Sulawesi, and cities in North Kalimantan with cities in South Sulawesi.
Each route will be served by at least one flight per week, Ubaedillah said. The types of aircraft needed will be small, such as CessnaGrand Caravan 208B, Twin Otter or Pilatus Porter.
With Pomako port in Timika included in the maritime highway route, the goods transported by sea are then distributed by air transportation to other parts of Papua.
“The purpose of the policy is not just to reduce the price disparity and ensure price stability of staple goods, but also to encourage our brothers there [in Papua] to fill the cargo with their goods to be sold in the western part of Indonesia,” Transportation Minister Budi Karya Sumadi said.
Indonesian National Air Carriers Association (INACA) head of scheduled flights Bayu Sutanto said that despite the planned subsidy provision, flight operations in Papua remain a risky business.
Bayu also said that operating cargo freights was not economically feasible due to the lack of cargo from Papua to more developed provinces.
