Minister accuses BPH Migas of being the culprit for high airfares
Minister of Transportation (Menhub) Budi Karya Sumadi accused the Downstream Oil and Gas Regulatory Agency (BPH Migas) of being one of the causes of the high price of domestic aircraft tickets. Budi assessed that BPH Migas protects the occurrence of avtur price monopoly in Indonesia.
This was conveyed by Budi Karya in a press conference on the Achievement of 10-year Transportation Infrastructure Performance of President Jokowi's Government at the Ministry of Transportation Building, Jakarta, Tuesday, September 1.
Furthermore, Budi considers that Avtur sales in Indonesia are much different from other countries that adopt a multiprovider system.
Other countries have multiprovers. I immediately pointed out that one provider made a monopoly price. I opened the price of the monopoly, protected by BPH Migas, please write down big ones," he said.
Budi also quipped the rules made by BPH Migas regarding the procedures and requirements of business entities that will carry out activities to provide and distribute aviation fuel (BBM).
"Yes, an operator must have international experience. How come the country has international experience. Tomorrow it will come to BPH Migas, ask them," he said.
The rules referred to by Budi are listed in Chapter III of the BPH Migas Regulation Number 13/P/BPH Migas/IV/2008. Where, in article 7 the regulation regulates the following provisions:
(1) Business Entities that will carry out mandatory Aviation Fuel Provision and Distribution Activities:
a. own and/or control the national and/or international Aviation Fuel Supply and Distribution network to ensure supply continuity;
b. have experience in aircraft response service activities (into plane services) at least three international airports;
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c. report in writing the plan for the Provision and Distribution of Aviation Fuel to the Regulatory Board.
(2) Business entities that do not have experience are required to cooperate with other parties who have experience in aircraft charging service activities (into plane services) at least in three international airports.
Furthermore, Budi admitted that it was not that he did not give any suggestions or input to BPH Migas. However, he said, BPH Migas did not listen to what was said.
"I've been soft, I've had a meeting with Pak Luhut (Binsar). It's not held," he said.