Minister Seeks to Lower Airfare Ceiling Price

Translator

Ricky Mohammad Nugraha

Editor

Markus Wisnu Murti

Senin, 6 Mei 2019 15:53 WIB

Transportation Minister Budi Karya Sumadi. TEMPO/Fajar Pebrianto

TEMPO.CO, Jakarta - Transportation Minister Budi Karya Sumadi said the government had finally decided to evaluate the domestic airfare ceiling price considering the people's present purchasing power.

“Within one week we will announce the ceiling price for economy flights,” said Budi Karya at the Coordinating Economic Affairs Ministry building in Central Jakarta on Monday.

Budi Karya was accompanied by SOE Minister Rini Soemarno and the director of flag-carrier Garuda Indonesia.

Read: Transportation Minister Still Grapples with High Airfares

The decision to lower the airfare ceiling price would affect economy flights from full-service flights to no frills or low-cost carriers.

The ministry’s air transport director general, Polana B Pramesti, confirmed the government’s plans and maintained that the government could only act as a regulator, which could not directly issue a policy to reduce the skyrocketing airfares.

“We cannot issue a new policy since the mechanism is controlled by the market,” said Polana today.

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