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Jakarta Post

Indonesia prepares new airfare regulation

  • Riza Roidila Mufti

    The Jakarta Post

Jakarta   /   Thu, March 28, 2019   /   11:26 am
Indonesia prepares new airfare regulation Visitors crowd the Lion Air Group exhibition at a shopping mall in Jakarta in March, when the airline offered discounted airfares. (JP/roi)

The Transportation Ministry is preparing a new regulation on airfares because the government is unhappy with the move by several airlines to lower their ticket prices.

The ministry’s spokesman, Hengki Angkasawan, said on Wednesday the draft regulation was being prepared by its law department and the directorate general of civil aviation.

"We can’t explain the details as it is currently being worked on," said Hengki, adding that the process had entered its final stage.

He said the ministry had talked to many parties, including airline representatives to seek input before the draft regulation process started. "We will release the new regulation soon."

It is expected to end the continuing debate on the high price of plane tickets, which has been blamed for low occupancy rates at hotels.

Currently, Transportation Ministerial Regulation No.14/2016 only regulates the ceiling price of airfares. Airlines are given the space to implement their own business strategies to generate revenue as long as they set prices at a determined rate. (bbn)