aviation

Prabowo Seeks To Lower Airfare Prices Again, Here Is The Method

President Prabowo Subianto has urged stakeholders involved in the aviation industry to reduce airfare prices once again. 

In response, aviation analyst Gatot Rahardjo outlined several measures that could be implemented to achieve lower ticket prices, particularly emphasizing the need for government courage in enacting such policies. 

He pointed out that the high cost of airline tickets is largely a result of government policies. For instance, he suggested eliminating import duties on spare parts and simplifying the import process by removing the non-collection certificate (SKTD) and the import and procurement needs plan (RKIP), thereby allowing for a more efficient import process in line with just-in-time (JIT) principles. 

"Therefore, it is indeed possible to lower airfare prices if there is political will from the government, as nearly all factors contributing to high ticket prices are under government control," he stated during a conversation with detikcom on Sunday, February 16, 2025. 

Gatot further emphasized that the government should recognize that economy class flights should not be treated as luxury items, similar to trains, buses, or ships, and thus should be subsidized. 

Additionally, he called for a reduction in the price of aviation fuel, noting that it constitutes a significant portion of operational costs for airlines. 

"Eliminating VAT across all aspects of aviation, including tickets, aviation fuel, and airport services, is essential," he remarked. 

He also urged the government to stabilize the value of the rupiah against the dollar in the aviation sector to shield the industry from fluctuations in the dollar's value. 

Finally, he advocated for improving the business climate by fostering healthy competition, suggesting that regulations that hinder fair competition should be revised. 

"Thus, it is crucial to reduce costs, which would consequently allow for a decrease in ticket prices," he concluded. 

Tag: Aviation Industry Prabowo Subianto