Association Of Airlines Requests Upper Limit Tariffs To Be Abolished, Ministry Of Transportation: Needs Considerations

Spokesperson for the Ministry of Transportation Adita Irawat. (Photo: Mery Handayani/VOI)

JAKARTA - The Ministry of Transportation has opened its voice regarding the proposal to abolish the upper limit tariff (TBA) for aircraft transportation.

Spokesperson for the Ministry of Transportation Adita Irawati said that regarding the decline in TBA, it is necessary to consider many aspects.

Furthermore, Adita explained, to revise the TBA it is necessary to change a series of rules, from laws to ministerial regulations. Moreover, if you have to remove the TBA.

"The TBA revision must definitely meet several factors. We certainly continue to discuss with associations. Later we of course need a letter from the association or airline. Frankly, until now there has been no official letter from the association. That's why these things, we as regulators must follow up based on black and white," he said when met at the Ministry of Transportation Office, Jakarta, Monday, November 13.

Regarding the removal of the TBA, Adita admitted that she had not received a letter from the airline association until now.

"Nothing yet. I got the information two or three days ago that didn't exist yet," he said.

Furthermore, Adita explained, the upper limit tariff is actually present to protect the public from the purchasing power side.

On the other hand, it is also to protect airline revenue.

"If it is read in the law, the aims of the upper and lower limits are to protect the two parties. The operator itself and also the community. In order not to go down too much, it is detrimental to airlines, if it is too high the burden on the community. So there is a corridor. So if you really want to be deleted, you have to discuss first how to protect the two parties," he said.

According to Adita, a thorough study is needed if there is a need for changes to the rules regarding the aircraft TBA.

The reason is, there are a number of aspects that are in the spotlight, such as community affordability to the impact on inflation sourced from tariffs.

"It's not related to changing the Ministerial Regulation, of course we will review the impact on, earlier on community affordability, on inflation, on other sectors. Because for example in eastern and archipelago it is also a means of production, not just transportation. It needs to be studied first, "he said.