Indonesian Political, Business & Finance News

Domestic Flight Ticket Prices Remain Competitive During Mudik Season, Says Transport Ministry

| Source: CNBC Translated from Indonesian | Regulation
Domestic Flight Ticket Prices Remain Competitive During Mudik Season, Says Transport Ministry
Image: CNBC

Jakarta – Domestic flight ticket prices frequently come under scrutiny during periods of heightened travel, such as extended holidays and the Lebaran mudik season. However, the government contends that the perception that domestic flight tickets are more expensive than international routes is not entirely accurate.

The Transport Ministry argues that price comparisons should be conducted proportionally, particularly by considering flight duration and demand conditions during specific periods.

The Director of Air Transport at the Transport Ministry, Agustinus Budi Hartono, stated that his office has conducted comparative price simulations for several flight routes with nearly equivalent travel durations.

“We recently began comparing foreign and domestic ticket prices based on nearly identical flight times,” Agustinus said.

According to him, the comparative analysis demonstrates that during peak demand periods, domestic ticket prices in Indonesia remain relatively competitive compared to certain international routes.

“Actually, during peak season, our ticket prices are cheaper than foreign tickets,” he said.

He cited the example of a two-hour flight from Jakarta to neighbouring countries such as Singapore or Kuala Lumpur. This route was then compared with domestic flights having nearly equivalent travel times.

“We took the example of the Cengkareng-Singapore route with approximately two hours of flight time. We compared it with domestic flights with nearly identical flight times, and it turned out that domestic tickets were still cheaper,” he said.

According to Agustinus, this situation demonstrates that ticket price increases during certain periods are a phenomenon occurring in many countries worldwide.

Travel demand surging simultaneously causes airlines in various countries to adjust ticket prices in accordance with market dynamics.

“Foreign operators also apply high prices during peak season. So it is not only in Indonesia,” he said.

Nevertheless, the government continues to monitor domestic flight ticket prices to ensure airlines comply with applicable tariff regulations.

“During peak season there is indeed high demand, but it must remain within the framework of applicable tariff regulations,” Agustinus said.

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