The President of Indonesia, Jokowi, reprimanded the Minister of Transportation and the Minister of SOEs regarding the increase in airline ticket prices. According to Jokowi, he has heard many complaints in the field regarding this increase.
The increase in airline ticket prices is the result of an increase in airline surcharges that can reach 25 percent. The increase in ticket prices is one of the national inflation actors.
Jokowi in the 2022 National Coordination Meeting for Inflation Control, Thursday (18/8/2022), stated, “In the field, I have heard complaints about high ticket prices. I have reacted. The Minister of Transportation (Budi Karya Sumadi), ordered this to be resolved immediately, Garuda, “.
Jokowi also gave a warning to the Minister of SOEs, Erick Thohir. Jokowi reminded the SOE minister that state-owned airlines should increase their flight fleet.
“So that prices return to normal, although it is not easy because of the high price of avtur,” said Jokowi.
Head of the Fiscal Policy Agency (BKF) of the Ministry of Finance Febrio Kacaribu previously warned that Indonesia’s inflation until July 2022 had reached 4.94% (year on year/YoY).
Meanwhile, the impact of the increase in air fares contributed to fairly large inflation. He estimates that this plane fare will have an impact on the overall national inflation later.
Furthermore, the government does not want to be negligent and will continue to monitor so that the increase in airfares and other policies does not interfere with Indonesia’s overall inflation rate.
As previously reported, The government, through the Ministry of Transportation (Kemenhub), gave a signal to airlines to increase surcharges by a maximum of 15% from the upper limit for jet aircraft.
Meanwhile, for propeller-type aircraft, a maximum of 25% of the upper limit rate. The existence of this surcharge will automatically increase the price of the airline ticket.
This is stipulated in KM 142 of 2022 concerning the Number of Surcharges Due to Fluctuations in Fuel (Fuel Surcharge) Passenger Tariffs for Economy Class Domestic Scheduled Commercial Air Transport which will be effective starting August 4, 2022.
Acting Director General of Civil Aviation Nur Isnin Istiartono said this policy needs to be established so that airlines have guidelines in implementing passenger fares.
“In writing, we have conveyed this appeal to each of the main directors of the national airline, so that it can be applied in the field,” said Nur Isnin in his official statement, Sunday (8/8).
Nur Isnin said the imposition of additional fees is optional or not mandatory for airlines.
Furthermore, Nur Isnin Istiartono said that his party felt the need to issue this provision.
“As a regulator, we need to establish this policy so that airlines have guidelines in implementing passenger fares,” he said, quoted from an official statement, Monday (8/8/2022).
According to him, this additional cost can accommodate the interests of all parties to provide consumer protection and maintain healthy business continuity.
