Govt to Take Measures to Lower Airfare
Date 6 Mei 2019
The Government will take several measures to lower airfare ahead of Eid-al-Fitr, according to Coordinating Minister for the Economy Darmin Nasution.
The Coordinating Minister added that the Government decides to enter the market because airfare does not only affect business entities but also affect many people. He said that he has instructed Ministry of Transportation to readjust the upper and lower limits of the airfare.
“We must understand the market structure and take policy based on the structure,” Darmin said during the Coordination Meeting on Airfare Policy at the office of Coordinating Ministry for the Economy, Jakarta, Monday (6/5).
In the meantime, Minister of State-Owned Enterprises Rini M. Soemarno, who also attended the coordination meeting, said that she will support the Government’s decision to control the airfare while still maintain the financial health of all state-owned companies, including the flag carrier Garuda Indonesia.
Rini went on to say that starting from May 2019, Indonesia is able to produce its own jet fuel and Ministry of State-Owned Enterprises will open the jet fuel cost structure to the airlines, after consulting state oil company Pertamina, to lower the airfare.
Minister of Transportation Budi Karya Sumadi agreed that the specific upper limit of the airfare for economic class needs to change. However, he needs time to conduct public consultation on this matter.
“I will set new upper limit, depending on the price of the jet fuel,” the Minister said.
The Coordinating Ministry for the Economy will hold another meeting to discuss the airfare control, after the upper limit readjustment of the airfare. (Humas Kemenko Perekonomian/ES)
Translated by: Ridwan Ibadurrohman
Edited by: Mia Medyana