Flight Tickets Feel in Indonesia Increasingly Expensive, Targeted to Drop by 2025

Flight Tickets Feel in Indonesia
Flight Tickets Feel in Indonesia Increasingly Expensive, Targeted to Drop by 2025

The soaring prices of domestic flight tickets in Indonesia have sparked widespread concern. Many citizens feel that airlines are charging excessively high prices, making air travel increasingly unaffordable. Addressing this issue, the government has set an ambitious goal to reduce ticket prices by 2025, following President Joko Widodo’s instructions to relevant ministries.

Dwi Marhen Yono, Director of Domestic Tourism Marketing at the Ministry of Tourism and Creative Economy (Kemenparekraf), highlighted that President Jokowi has specifically directed actions to curb the high costs of aviation fuel (avtur).

“President Jokowi, through Mr. Luhut, has instructed Pertamina to ensure that avtur prices are competitive with those in other countries, so ticket prices can be more affordable,” Marhen explained during the BBTF event in Nusa Dua on Thursday, June 13, 2024.

Currently, avtur prices in Indonesia are significantly higher compared to neighboring countries. Marhen pointed out that 39.5% of the high ticket prices are due to the expensive avtur, which costs Rp4,000 more than in Singapore and Rp7,000 more than in Dubai. This discrepancy results in domestic flight tickets being much more expensive than international routes.

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For instance, a flight from Jakarta to Bali now costs between Rp1.1 million and Rp1.4 million, whereas, before the Covid-19 pandemic, it was typically less than Rp1 million.

Another major factor behind the steep prices is that airlines have not yet resumed full operations post-pandemic. Out of 1,200 aircraft in the country, only about 800 are currently flying, creating a shortage of available seats even as passenger demand returns to normal levels.

This combination of high fuel costs and limited operational aircraft has led to a decline in tourist visits to various regions, including West Nusa Tenggara (NTB). In 2023, Zainuddin Abdul Majid International Airport in Lombok saw 24,600 flight movements, a 17.1% increase year-on-year, with 2.34 million passengers passing through the airport.

Domestic routes dominated passenger traffic at Lombok Airport in 2023, accounting for 91% of all passengers. Domestic travelers totaled 2.1 million, while international travelers were just 200,000.

The overall number of passengers last year was only 81% of the pre-pandemic figure of 2.9 million in 2019.

Efforts to address the high ticket prices are underway, and the government is optimistic about achieving more affordable air travel by 2025. This initiative aims to boost tourism and support economic recovery in various regions across Indonesia.