President Jokowi Calls for Avtur Price Review Amid Complaints on Domestic Airfares Hike
Date 13 Februari 2019
In a bid to lower price of domestic flight tickets, President Joko Jokowi Widodo has instructed related ministers to review the price of avtur or jet fuel which considered have been playing a significant role in domestic airfares hike.
We just discussed it in a meeting. I have instructed (the minister) to review and recalculate avtur price to make it more efficient, then we will make a decision immediately, President Jokowi responded to reporters questions after the inauguration of Governor and Deputy Governor of East Java, Governor of Jambi, and Indonesian Ambassadors to friendly countries, at the State Palace, Jakarta, on Wednesday (13/2).
The President ensured that the Government will immediately make a decision regarding the new price after being calculated and reviewed by the related ministries/institutions.
President Jokowi admitted that during the gala dinner event in commemoration of the Indonesian Hotel and Restaurant Associations (PHRI) 50th anniversary, at the Grand Sahid Jaya Hotel, Jakarta, on Monday evening (11/2), he received many complaints about high airfare on domestic flight.
According to the President, it is because avtur in Indonesia is set at high price. Honestly, I was shocked after finding out about the price of avtur from Chairul Tanjung (Chairman of CT Corp). In fact, the state-owned oil and gas company Pertamina has a monopoly in avtur markets in Soekarno-Hatta Airport, President Jokowi said on Monday (11/2).
He went on to say that there are only two solutions to address the problem; set the same price as global market, or allow other players to sell avtur.
This problem has huge implication and there are only two choices to address it, the President firmly said. (RSF/JAY/ES)
Translated by : Rany Anjany Subachrum
Edited by : Yuyu Mulyani