Indonesian Govt to Form Task Force to Tackle Rising Flight Ticket Prices
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July 14, 2024 | 07:34 pm
TEMPO.CO, Jakarta - The Indonesian government plans to establish a task force to bring down the prices of flight tickets and create a more efficient domestic aviation industry, said Minister of Tourism and Creative Economy Sandiaga Uno.
"We have received instructions on this matter," Uno said on Sunday, July 14, 2024. "The plan involves nine measures, including a task force dedicated to reducing flight ticket prices."
Officials from relevant institutions, including the Coordinating Ministry for Economic Affairs and the Coordinating Ministry for Maritime Affairs and Investment, will staff the task force.
Uno noted that rising fuel costs are not the sole factor in ticket price hikes. Taxes and operating costs also play a role.
"We will study all aspects to ensure a more efficient aviation industry," he pointed out.
Coordinating Minister for Maritime Affairs and Investment Luhut Binsar Pandjaitan previously revealed plans for efficiency measures to suppress ticket prices, focusing on aircraft operating costs.
In an Instagram post, he emphasized the need for detailed calculations of the cost per block hour (CBH), a significant portion of operating costs.
"We are also formulating a strategy to reduce CBH based on aircraft types and flight services," he said.
Luhut expressed belief that adjusting the fare calculation mechanism to reflect airlines' operating costs per flying hour will significantly reduce ticket prices.
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