Indonesian Tourism Minister Targets 10% Decline in Flight Ticket Prices Before October
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23 July 2024 13:00 WIB
TEMPO.CO, Jakarta - Indonesian Minister of Tourism and Creative Economy Sandiaga Uno targeted a 10 percent decline in flight ticket prices in upcoming months as the task force to tackle flight tickets is already working.
"We can lower the flight ticket prices approximately in two or three months and before October, before the end of President Joko Widodo's (Jokowi) administration,” said Sandiaga on Monday evening, July 22, 2024.
President-elect and Vice President-elect Prabowo Subianto and Gibran Rakabuming Raka will soon replace Joko Widodo and Ma'ruf Amin.
According to Sandiaga, the task force has taken a few breakthrough steps in evaluating plane ticket prices. These include aviation fuel costs, spare parts costs, permits, VAT, and passenger taxes.
Apart from that, Sandiaga said the government is coordinating with airlines to provide more affordable plane tickets. He claimed that Garuda Indonesia advised to offer some promos.
Sandiaga also advised the public to choose the right time to travel to avoid high plane ticket prices.
Minister of State-Owned Enterprises Erick Thohir once stated that the inadequate number of aircraft caused the high flight ticket prices. "The Minister of Transportation ( Budi Karya Sumadi) said there are 400 (planes) when we actually need 700," said Erick on Thursday, November 23, 2023.
Responding to this situation, the Coordinating Minister for Maritime and Investment Affairs Luhut Binsar Pandjaitan said he was preparing aviation efficiency measures to reduce airplane ticket prices, one of which was related to evaluating aircraft operating costs.
Luhut explained that Cost Per Block Hour (CBH), the largest component of aircraft operating costs, needs to be identified in detail regarding its formation. "We are also formulating a strategy to reduce the CBH value, based on the type of aircraft and flight service," said Luhut, quoted from Antara.
RIRI RAHAYU
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