Govt Mulls Over One-Price Policy on Jet Fuel to Lower Airfare



Laila Afifa

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  • TEMPO.CO, JakartaCoordinating Minister for Economic Affairs Airlangga Hartarto said the Ministry of Energy and Mineral Resources (ESDM) and state-owned oil and gas firm Pertamina will study on a one-price policy on jet fuel or avtur in a bid to suppress airfare.

    “East and west regions of Indonesia have different infrastructures," said Airlangga in Jakarta, Thursday night, December 26.

    According to Minister Airlangga, the study on the same pricing of airline fuel will be carried out in response to demands voiced by the Indonesian National Aviation Company Association (INACA).

    The association also urged the government to loosen the ban and restriction on the import of aircraft’s spare parts.

    INACA chairman Denon B. Prawiraatmadja said there was a disparity in the price of aviation fuel between western, central, and eastern Indonesia, which was around Rp3,000 per liter. As a result, entrepreneurs were beset by the avtur, which is the driving component of airline ticket prices besides the fluctuating exchange rate.

    "We hope [the government] will loosen [the policies] so that the aviation industry can perform better in the future," said Denon.