Speaking to reporters in Jakarta on Thursday (14/11/24,) Indonesia’s Deputy Minister of Transportation, Suntana raised the possibility of airfares being lowered ahead of the upcoming Christmas and New Year holidays to ease travel costs, according to reporting from Antara News.
“After the calculation at the meeting, the airline ticket (price) is likely to go down,” he said, adding the government is conducting a comprehensive calculation of the operational costs of each aircraft, including various burdens, for determining ticket prices.
“We are targeting a price reduction before the Christmas and New Year holidays,” he said.
His ministry is currently coordinating with the Ministry of Economy and the Ministry of Infrastructure, at President Prabowo Subianto’s direction, to achieve this goal, says Antara News.
The ministry has also conducted intensive discussions with airlines to discuss operational costs and other factors affecting air ticket prices in the market.
Although the quantum of price reduction is not yet known, Suntana said that the government is committed to reducing the burden of transportation costs on the community.
“We are still calculating the price reduction. We are definitely aiming to reduce airplane ticket prices,” he said.
Antara News reports that although VAT will increase to 12 percent next year, the regulation will remain flexible, and sectors that directly impact the community could be exempt from the tax. Suntana said, “The regulation is flexible … We know some community activities are not subject to VAT. That is what we are after,” he explained.
Earlier, State-Owned Enterprises (SOEs) Minister Erick Thohir called for the formation of a project management officer (PMO) team to handle the issue of airline ticket prices as well as strengthen the development of the national tourism sector, adding that such a team could devise a comprehensive solution regarding the airfare issue using a collaborative approach between ministries, according to Antara News.
Source: Antara News
Stock image by Joshua Woroniecki from Pixabay
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