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The Ministry Of State-Owned Enterprises To Set Up A Task Force Aimed At Reducing Airfare Costs

, 03 Nov 2024

The Ministry of State-Owned Enterprises (BUMN), along with the Ministry of Tourism and the Ministry of Transportation, is set to establish a dedicated team aimed at boosting national tourism. This initiative was revealed by BUMN Minister Erick Thohir following discussions with the relevant ministers.

Erick elaborated that this task force will facilitate cross-ministerial cooperation, ensuring that all tourism-related policies are harmonized to deliver effective solutions, particularly in response to the rising costs of domestic flight tickets.

"We will create a collaborative team to identify solutions," Erick announced in Jakarta on Thursday (October 31, 2024).

He noted that this inter-ministerial collaboration is in line with the instructions from President Prabowo Subianto during his visit to Magelang.

"We anticipate that the team will be established within the next 1-2 weeks and will begin evaluating all policies or their derivatives for efficient execution," he added.

The issue of high flight ticket prices in Indonesia has garnered significant attention from the Business Competition Supervisory Commission (KPPU), which has identified various factors that contribute to the unaffordability of air travel for the public.

KPPU member Budi Joyo Santoso highlighted several factors contributing to elevated airline ticket prices, including the high cost of aviation fuel, a monopolized fuel distribution system, tax elements, and the practices of business operators.

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

This assertion was backed by PT Pertamina Patra Niaga, a subsidiary of PT Pertamina (Persero), which stated that avtur prices are competitive and adhere to local regulations.

"The avtur prices published in Indonesia are quite competitive. Pertamina's avtur prices are on par with, and in some cases lower than, those in countries with similar geographical characteristics," said Corporate Secretary Heppy Wulansari in early September.



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