President Jokowi to Summon Pertamina CEO Over Jet Fuel Price
Date 12 Februari 2019
President Joko Jokowi Widodo said that he has received many complaints regarding the high price of airline tickets for domestic flights. According to the President, the price increase is due to higher price of jet fuel in Indonesia.
“Jet Fuel distribution at Soekarno-Hatta Airport is monopolized by Pertamina,” President Jokowi said during the 50th Anniversary of the Association of Indonesian Hotels and Restaurants (PHRI) at Grand Sahid Jaya, Jakarta, Monday (11/2).
The President added that he will summon the CEO of Pertamina and said that the jet fuel price should be the same as international price or the Government will let competitors enter the market.
President Jokowi went on to say that the monopoly creates uncompetitive price and that jet fuel price in neighboring countries is 30% lower than the price in Indonesia.
The jet fuel price will affect flight price because the jet fuel constitute 40% of airline ticket price,” the President said, adding that many companies are ready to enter the jet fuel market.
“A healthy competition will create cost efficiency, the President concluded. (FID/OJI/ES)
Translated by: Ridwan Ibadurrohman
Edited by: Yuyu Mulyani