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Ministry Of SOEs Creates Task Force To Lower Airfare Prices

, 03 Nov 2024

The Ministry of State-Owned Enterprises (BUMN), the Ministry of Tourism, and the Ministry of Transportation will create a special team to enhance national tourism. This was announced by BUMN Minister Erick Thohir after a meeting with the relevant ministers.

Erick explained that the establishment of this special task force is part of a cross-ministerial collaboration. The task force will align all tourism-related policies to provide ideal solutions, including addressing the high prices of domestic flight tickets.

"We will form a joint team to find solutions," Erick stated in Jakarta on Thursday (October 31, 2024).

He mentioned that the cooperation among ministries aligns with the directive from President Prabowo Subianto in Magelang.

"Hopefully, within 1-2 weeks, the team will be formed and will start reviewing all policies or their derivatives for effective implementation," he concluded.

The high cost of flight tickets in Indonesia has drawn special attention from the Business Competition Supervisory Commission (KPPU). The commission revealed several factors contributing to the unaffordability of flight tickets for the public.

KPPU member Budi Joyo Santoso noted that factors leading to high airline prices include the expensive cost of aviation fuel, a monopolized distribution of fuel, tax components, and the behavior of business operators.

Energy and Mineral Resources Minister Bahlil Lahadalia has denied claims that avtur prices in Indonesia are the highest in Southeast Asia. 

This statement was supported by PT Pertamina Patra Niaga, a subsidiary of PT Pertamina (Persero). Pertamina confirmed that avtur prices are competitive and comply with local regulations.

"The published avtur prices in Indonesia are quite competitive. Pertamina's avtur prices are comparable and even lower than those in countries with similar geographical features," said Corporate Secretary Heppy Wulansari in early September.



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