High domestic airfare prices in Indonesia have often sparked public complaints, raising concerns about affordability for travelers. As a solution, the government has announced a 10% reduction in domestic airfares for the upcoming Christmas and New Year (Nataru) holiday period in 2024/2025. The measure is expected to stimulate local tourism while aligning with directives from President Prabowo Subianto.
Coordinating Minister for Economic Affairs, Airlangga Hartarto, described the initiative as a strategic step to enhance domestic tourism accessibility.
“The government has decided to lower domestic airfare by 10% to encourage more travel within the country,” Airlangga stated, as quoted by detikFinance on Sunday (1/12/2024).
President Prabowo emphasized the importance of ensuring direct flight connectivity to key tourist destinations, citing Tanjung Kelayang in Bangka Belitung as a prime example. He noted that without direct flights, travelers must take lengthy detours, such as transiting through Jakarta or Palembang.
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“Destinations like Tanjung Kelayang and Labuan Bajo need direct flights. Without them, it becomes difficult for tourists to visit these areas,” Airlangga explained.
Addressing Challenges in Aviation
Indonesia’s aviation industry currently faces challenges due to a limited fleet of fewer than 400 aircraft, despite increasing demand for domestic travel. Airlangga highlighted the sector’s vital role in driving economic growth, with domestic tourist numbers far exceeding those traveling abroad.
“Seventeen million tourists travel domestically, compared to 7.5 million going overseas. Tourism remains a key economic driver, and we aim for quick wins to harness its potential,” he said.
The decision to lower airfares was finalized in a cabinet meeting chaired by President Prabowo at the Presidential Palace on Tuesday (26/11). Achieving the fare reduction without compromising VAT will require collaboration among various stakeholders.
Airlines, PT Angkasa Pura Indonesia, PT Pertamina, and AirNav will play crucial roles in adjusting fees such as fuel surcharges, cargo service charges, and aviation fuel (avtur) prices at select airports.
Efforts for Reducing Domestic Airfares in Indonesia
To ensure the 10% domestic airfares reduction in Indonesia is realized, the government has instructed these entities to streamline costs and maintain efficiency. The adjustments will target peak travel periods to ensure affordability without disrupting airline operations.
This initiative reflects the government’s commitment to making air travel more accessible while addressing the long-standing issue of high ticket prices. By prioritizing affordable travel options, the government aims to create a more vibrant and inclusive domestic tourism sector that benefits travelers and regional economies alike.
