Minister Of Transportation Budi Denies Indonesia's Avtur Price Is The Most Expensive In ASEAN: Not Completely True

JAKARTA - Minister of Transportation (Menhub) Budi Karya Sumadi denied the statement by Air Asia CEO Tony Fernandes who said the price of Indonesian aviation fuel was the most expensive among countries in ASEAN.

Budi admitted that the price of Indonesian aviation fuel is indeed expensive, but not the most expensive. He also questioned the data used by Tony Fernandes regarding the price of the avtur.

"So this is not true. If we talk, we have to use data. That (avtur) is expensive, yes, if it's the most expensive or not," he said in Sarinah, Jakarta, written Tuesday, September 10.

Separately, Budi also suggested that aviation fuel sales be carried out using a multiprovider mechanism. The goal is to make the price of avtur in Indonesia more competitive.

As is known, currently sales of avtur in Indonesia are only carried out by one company, namely PT Pertamina (Persero).

"This Avtur is also held in a meeting, it shouldn't be a monopoly and we should base it on what is called a multiprovider KPPU recommendation. So there are several providers who do (sales of avtur)," Budi said at the DPR Building, Jakarta, Monday, September 9.

Previously, Air Asia CEO Tony Fernandes revealed that there were several factors that made the price of airplane tickets in Indonesia expensive. First, the price of aviation fuel in Indonesia is 28 percent higher than other countries in ASEAN.

Therefore, according to Tony, Indonesia must have a competitor to avtur suppliers. The goal is that the fuel price of aircraft in Indonesia can be more competitive.

For example, continued Tony, in Malaysia there are three avtur supplier companies. This makes the price of avtur in this neighboring country more competitive.

In large parts of the country there is a choice. If there is only one in Indonesia, they can charge the costs they want. (So) competition is needed," said Tony.