Sets Ticket Tariff, the Government Requests Airlines to Complies
Minister of Transportation Budi Karya Sumadi. Photo by Transportation Ministry

JAKARTA (TheInsiderStories) – The government through the Ministry of Transportation has issued two new rules related to airplane tariffs on Friday last week. With these rules, the government requested that airlines throughout Indonesia immediately comply by lowering their plane tickets, said a senior minister in a written statement on Saturday (03/30).

According to Minister of Transportation Budi Karya Sumadi, the regulation was issued followed receiving suggestions and complaints from the public followed several months the domestic airline increased ticket fares and added paid baggage.

He said, the two rules that have been promulgated are Ministerial Regulation Number 20 of 2019 concerning Procedures and Formulations for Calculating the Upper Limit Limits of Economy Class Domestic Passenger Class Transportation Airline Passenger Services and Minister of Transportation Decree Number 72 Year 2019 concerning Upper Boundary Rates for Economy Class Domestic Passenger Scheduled Air Transport Services Passengers.

“We are very concerned about the needs of the community or consumers to travel by airplane. On the other hand, we also protect the sustainability of the Air Transport Business Entity,” he said in Jakarta.

Sumadi explained, in this regulation the government changed the lower limit tariff rule to 35 percent of the upper limit tariff, which was imposed today. Previously, the lower limit rate was only 30 percent of the upper limit tariff.

He said, the government would continue to observe the tendency of high aircraft tariffs and had discussed with relevant parties including the airline, to keep the people’s purchasing power uninterrupted.

“At present we expect the airline to follow up the essence of the articles on the new rules, so that we do not need to make more rigid rules such as the application of subclasses, so that the industry is more independent but still adheres to the applicable rules,” he said.

On that time, Sumadi appreciate to the one of biggest Indonesian airline, Lion Air Group, which have lowered tariffs through various means such as giving discounts and so on since last weekend.

“We ask them to keep a commitment and be consistent with the regulations set by the government. It is expected that other airlines will also follow,” he said.

Head of the Communication and Public Information Bureau of the Ministry of Transportation Hengki Angkasawan, explained that with this regulation, the government could at any time evaluate the tariff rates regularly every 3 months; and/or at any time in the event of a significant change affecting the continuity of the activities of the air transport business entity.

Responding to the government’s regulation, a number of airline began to reduce ticket prices. For example, Lion Air Group, to reduce the price of airplane tickets for all routes to 30 percent since March 30. The decline in airplane ticket prices applies to Lion Air, Wings Air and Batik Air airlines with different amounts according to the previous price limit.

Meanwhile, Garuda Indonesia expressed its attitude to comply with the new regulations regarding aircraft tariffs issued by the government, but has not confirmed the time for fixing tickets.

Last week, Garuda gave discounts of up to 50 percent on airplane tickets on the anniversary of State-Owned Enterprises, and other discounts. But the airline has not made a complete reduction in tickets like Lion Air.

Therefore, the public is still waiting for when the country’s airlines comply with their superior policies. Moreover, they are state-owned airlines that must serve the society well.

Written by Daniel Deha, Email: daniel@theinsiderstories.com