Ministers, Garuda Indonesia to Hold Meeting on Airfare Issue

Translator:

Editor:

Laila Afifa

  • Font:
  • Ukuran Font: - +
  • Garuda Indonesia Travel Fair 2018 at the Jakarta Convention Center, April 6, 2018. TEMPO/Tony Hartawan

    Garuda Indonesia Travel Fair 2018 at the Jakarta Convention Center, April 6, 2018. TEMPO/Tony Hartawan

    TEMPO.CO, JakartaCoordinating Minister for Economic Affairs Darmin Nasution vowed to hold a special meeting for talks on airfare. He planned to invite SOE Minister Rini Soemarno and Garuda Indonesia director boards.

    “Yes, we will hold a meeting with Transportation Ministry, Garuda, and SOE Minister in early next week,” said Darmin after a press conference about the government’s preparation ahead of Ramadan and Eid el-Fitr in his office, Thursday, April 25.

    Darmin explained the meeting will discuss the regulation on the minimum and maximum airline tariffs considering some airlines did not abide by the policy as it was deemed unclear thus far.

    The meeting will be taken place also due to pricey airfare despite nearing Eid el-Fitr and homecoming season.

    Earlier, Transportation Minister Budi Karya Sumadi said he called Minister Darmin Nasution in light of the uptrend in airline tickets.

    “I’ve reported that the tariff issue has yet to become conducive, so I ask Coordinating Ministry for Economy and SOE Ministry to jointly manage airline tariffs,” said Budi Karya on Thursday, April 25.

    Budi Karya further said the request of participation to arrange the tariff was specifically asked for airlines whose shares owned by the government or SOE, particularly Garuda Indonesia that had become the market leader in the aviation industry.

    Additionally, Budi Karya admitted to handing over the sub-price or sub-class ticket pricing to Coordinating Ministry for Economic Affairs. The sub-class tariff is a grouping of cheap airline tickets that must be available on a flight.

    “[Regulating] sub-price ticket is such a repressive act, and I don’t want that, but if the Coordinating Ministry for Economy orders so, I’ll execute it,” Budi Karya concluded.

    Meanwhile, the Business Competition Supervisory Commission (KPPU) Commissioner, Guntur Saragih, opined the government through Transportation Ministry should refrain from intervening airlines tariff, arguing that airfares must be set based on the market mechanism.

    DIAS PRASONGKO

    Read: KPPU Calls Gov't to Not Intervene Airlines Tariff