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Indonesia issues two new regulations on airfares
Under the new regulation, the price floor for airplane tickets must be 35 percent of the price ceiling, compared to 30 percent in the previous regulation.
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An Airbus A320 of low-cost carrier Citilink takes off from Ngurah Rai International Airport in Bali. (Antara/Nyoman Budhiana)
T
he Transportation Ministry has issued two new regulations on airline tickets that will determine the calculation of airfares and price ceilings.
The two regulations are in the form of Transportation Ministerial Regulation No. 20/2019 on airfares for domestic commercial airlines and Ministerial Decree No. 72/2019 on airfare ceilings, which is a derivative regulation of the former.
According to Nur Isnin Istiarto, secretary to Transportation Ministry's civil aviation directorate general, all regulations that serve domestic flights must refer to the new regulations in determining airfares.
"Airlines also need to take into account input from users as well as regulations on customer protection and fair competition,” Isnin said, adding that airlines also needed to disseminate their new airfares.
Under the new regulation, the price floor for airplane tickets must be 35 percent of the price ceiling, compared to 30 percent in the previous regulation.
Transportation Ministry spokesperson Hengki Angkasawan said the two regulations were a revision of Transportation Ministerial Regulation No. 14/2016 on airfares.
“Previously, calculations for the price floor and ceiling were determined by Ministerial Regulation No 14/2016, but it has been separated into two regulations,” he added.
With such a separation, Hengki said, the Air Transportation Directorate General could conduct a review every three months or at any time to help the sustainability of the aviation business.
The government issued the new airfares regulations after it saw that airlines were reluctant to respond to a call made by President Joko "Jokowi" Widodo to decrease ticket prices and help boost tourism. (bbn)
