Airfare Reduction Task Force to Begin Work in August; Reassess Flight Operating Costs
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18 July 2024 19:28 WIB
TEMPO.CO, Jakarta - I Gusti Ayu Dewi Hendriyani, head of the Communications Bureau of the Ministry of Tourism and Creative Economy, said the ministry would participate in the work of a special task force to reduce air ticket prices.
The ministry will be involved through "nine steps for aviation efficiency and reducing ticket prices in which ministries or institutions will be involved in accordance with their respective duties and functions," she said on July 18.
She said the government will implement the nine measures through the National Air Transport Ticket Price Supervision Committee to improve flight efficiency and reduce ticket prices, which include evaluating aircraft operating costs, strengthening connectivity and business competition policies, and adjusting the maximum fare policy based on route density.
"There is also the evaluation of the role of revenue from cargo on airline revenue, the provision of incentives for VAT DTP on airline tickets, multi-provider aviation fuel to reduce the price of aviation fuel, the acceleration of the exemption of import duties and opening prohibitions and restrictions, the elimination of double charges on VAT on aviation fuel and airfares, the elimination of double charges on tariffs airline tickets," she said.
The formation of the air ticket price reduction task force was carried out after a coordination stage among related ministries/related institutions. The task force will work under the coordination of the Coordinating Ministry of Maritime Affairs and Investment and the Coordinating Ministry of Economy.
"The work of the task force will effectively start in August 2024."
He added that the Ministry of Tourism, in cooperation with the Ministry of Transportation and other ministries, as well as travel agencies, will encourage the bundling of air tickets with accommodation and tours.
"We will hold the Wonderful Indonesia Travel Fair in October 2024 as a promotion and mitigation strategy during the low season," she said.
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