Transportation Minister: Airline Incentives to Complete Next Week

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Laila Afifa

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  • TEMPO.CO, Jakarta - Transportation Minister on Minister Budi Karya Sumadi says the government will give direct subsidies for airlines to reduce losses due to the Coronavirus (Covid-19). He said the policy will be finalized and reported to President Joko "Jokowi" Widodo on Monday, February 24, 2020.

    "It will be finalized later as some things are needed to be done. [And] we'll report it to the president on Monday," he said at the Coordinating Ministry for Maritime and Investment office in Jakarta, Thursday, February 20, 2020.

    According to the minister, this incentive will be granted to both domestic and international flights. However, he didn't elaborate on the form of incentives. 

    Budi explained that Coronavirus has greatly affected the aviation sector and domestic tourism as many workers in the tourism sector are unemployed. Therefore, the government's plan to provide incentives to the aviation sector is expected to give them opportunities to continue working.  

    Meanwhile, Tourism and Creative Economy Minister Wishnutama Kusubandio said, based on his meeting Transportation Minster and 33 airlines, the majority of airlines agree with the incentive and discount policies. Several airlines even plan to add new routes.

    In the initial plan, the discount for the ticket prices will be around 25-30 percent. But it will be decided in the meeting between the Transportation Ministry and the Finance Ministry.

    Meanwhile, the incentives given for airliners include the cutting of landing fees and aviation fuel. But the detail and exact figures are still under discussion.

    Eko Wahyudi | Galuh Kurnia Ramadhani (Intern Translator)