Infrastructure Ministry Calls on Online Travel Agents to Comply with Aircraft Fare Policy
Jakarta — The Coordinating Ministry for Infrastructure and Regional Development (Kemenko Infra) has called on online travel agents (OTAs) to comply with aircraft fares set by the government.
“We appeal to OTA ticket agents to comply with aircraft tariff policies established by the government,” said Odo R.M. Manuhutu, Deputy for Connectivity Coordination at Kemenko Infra, during an online press conference monitored in Jakarta on Tuesday.
According to him, the government is committed to maintaining affordable air transport for the public in line with President Prabowo Subianto’s directive to ensure domestic travel remains safe and accessible to all segments of society.
As a concrete step, the government has implemented several policies to suppress aircraft ticket prices during the Eid holiday period through various components of national flight operational costs.
The policies include a 50 per cent discount on Aircraft Passenger Services (PJP2U) and Aircraft Landing, Placement and Storage Services (PJP4U), a reduction in fuel surcharge to two per cent, and a 20 per cent reduction in propeller costs.
In addition, the government is also providing aviation fuel (avtur) price discounts of up to 10 per cent at 37 airports to reduce operational costs for domestic airlines during the Eid holiday period.
Through these policies, the government targets a reduction in aircraft ticket prices of 17 to 18 per cent from the base tariffs applicable to each flight route.
Kemenko Infra estimates approximately 3.3 million passengers will use air transport during the Eid holiday transport period, making price stability a top priority for the government.
Odo emphasised that the policy resulted from cross-ministerial and inter-agency coordination to ensure its benefits are directly felt by users of national air transport services.
The government hopes this policy will dampen perceptions of excessive ticket price increases and provide cost certainty for passengers during the Eid holidays.
He also appealed for all stakeholders to support government policy so ticket prices remain controlled and passengers can travel safely, comfortably and affordably during the holiday season.
Kemenko Infra is encouraging improvements to the aviation industry’s cost structure, including avtur prices and spare parts regulation, to increase efficiency and suppress domestic aircraft fares.
He stated the government is currently focused on comprehensively improving the cost structure of the national aviation industry.
According to him, one of the largest cost components in the aviation industry is avtur, which significantly influences aircraft ticket prices on various domestic Indonesian routes.
The government is currently encouraging improved competitiveness of national avtur prices to reduce airline operational costs and maintain affordable fares for the general public.
Additionally, the government is also seeking to reduce avtur price disparities between airports so prices in areas outside Jakarta can approach prices at major distribution centres.
Odo explained that currently the cheapest avtur prices are in Jakarta and Bali, so policies are needed to balance prices in other regions such as Medan, Ambon, and Papua.
Another step being taken is encouraging compliance among online travel agents or OTAs with aircraft tariff policies formally established by the government.
The government is also streamlining regulations related to aircraft spare parts to accelerate maintenance processes and improve the availability of national airline fleets.
Adjustments to import tariffs and HS code classifications for spare parts are expected to reduce additional costs that have burdened airline operations.
Through these facilitations, the fleet repair process is expected to be faster so the number of operating aircraft can increase to meet market demand.
The government is also encouraging local governments to support financing for pioneer routes to ensure regional connectivity is maintained, particularly in remote and disadvantaged areas.
Through these various steps, Kemenko Infra is optimistic that aviation industry efficiency can improve, resulting in reduced ticket prices and improved national air transport services.