Transportation Minister: Plane Ticket Price 15 Percent Cheaper

TEMPO.CO, Jakarta - Transportation Minister Budi Karya Sumadi said that the ceiling price for plane tickets will be lowered by 15 percent. "Yes, within that range. We'll finalize on Monday," Budi said at the Presidential Complex on Thursday, May 9, 2019.

Budi said that the base for the calculation was determined by calculating the primary production price (Harga Pokok Produksi – HPP). The HPP, the Minister explained, was based on on-time performance, jet fuel, US Dollar, and load factor.

Budi asserted that the plan to reduce the ceiling price will be finalized on Monday next week. He made sure that the price reduction will not be a burden for airlines. "We have calculated everything," he said.

Previously, the government is planning to evaluate the regulation related to ceiling price for plane tickets, which is currently causing high-cost economy, to adjust prices prior to the homecoming season.

According to the Central Statistics Agency data, the transportation sector contributes 0.05 percent of the total inflation rate recorded on April 2019, which is 0.44 percent.

BPS summarized that the plane ticket increase occurred in 39 cities across Indonesia. The increase caused the number of passengers to decrease significantly. The number of airline passengers recorded from January to March 2019 dropped by 17.66 percent compared to the same period last year.

FRISKI RIANA