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Tourism and Creative Economy Minister Wishnutama admitted he often received criticism through media about high airfares.
Coordinating Minister Luhut Binsar Pandjaitan responded to a report filed by INACA related to policies on the reduction of airlines tariff.
To reduce airplane ticket prices, he government will provide incentives to airlines so they can lower airfares.
Aviation observer and member of the Republic of Indonesia's Ombudsman, Alvin Lie, said the government has intervened airlines' businesses too far.
The Aviation Law No. 1/2009 gives the transportation ministry the authority to set the TBA for economy class airfares.
Air Asia Indonesia CEO Dendy Kurniawan asked the government to eliminate the lower limit for airfares.
The Business Competition Supervisory Commission (KPPU) said they found strong indications of duopoly behind the expensive airplane ticket prices.
Previously, President Joko "Jokowi" Widodo allowed foreign airlines to operate in Indonesia as an effort to reduce flight ticket prices.
Transportation Ministry demanded online-based travel agents, such as Traveloka, provide clear information on flight routes and classes on their apps.
Airline ticket prices finally declined as per today, May 20.
Garuda Indonesia will reduce its in-flight and ground handling services to offset lower airfares.
Lowering the upper-cap of airfares, government guarantees that the policy will not negatively affect the air carrier's financial health.
Coordinating Minister Darmin Nasution instructed Transportation Minister Budi Karya Sumadi to issue a regulation on plane ticket price
The govt has decided to intervene with airline ticket prices by amending the rule on the upper limit tariff (TBA)-lowering the top threshold by 15%
The Transportation Ministry will cut the upper limit tariff or airplane tickets by about 15 percent.