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Govt forms task force to fight prolonged high domestic airfare prices
Indonesia's airfare prices are among the highest in the world according to Coordinating Maritime and Investment Minister Luhut Pandjaitan. High prices have also been blamed by local businesses for hampering the recovery of the country’s tourism sector.
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Green flight: Technicians prepare a Garuda Indonesia plane for a test flight using sustainable aviation fuel on Oct. 27, 2023, at Soekarno-Hatta International Airport in Tangerang, Banten. The plane successfully landed in Adi Sumarmo Airport in Surakarta, Central Java, later that day.
(Antara/Farhan Arda Nugraha)
T
he government has formed a task force to fight high domestic airline ticket prices, which have been a problem since the COVID-19 pandemic.
The task force will include officials from relevant institutions, including the Office of the Coordinating Economic Minister and the Office of the Coordinating Maritime Affairs and Investment Minister.
“Coordination meetings have already been held, and nine forward steps have been ordered, including forming the task force to reduce airfare prices,” Tourism and Creative Economy Minister Sandiaga Uno said, as quoted from state news agency Antara.
Indonesia's airfares are the second highest globally after Brazil, according to Coordinating Maritime Affairs and Investment Minister Luhut Pandjaitan, which has prompted the government to initiate efforts to lower ticket prices.
High airfare prices were also blamed by local businesses for hampering the recovery of the country’s tourism sector.
Rising aviation fuel costs are among the leading causes of high ticket prices, but he stressed that the government has identified other operational factors as well, including tax burden, which also plays a significant role.
All these elements that have contributed to the price hike will be reviewed by the task force to ensure the aviation industry can become more efficient, he added.
