Anticipating Rising Inflation, Minister Of Transportation Budi Asks Airlines To Provide Affordable Ticket Prices

Soekarno Hatta Airport. (Photo: Wikimedia Commons)

JAKARTA - Minister of Transportation (Menhub) Budi Karya Sumadi asked airlines to provide affordable ticket prices for the public. He also appealed to airlines not to apply an upper limit rate (TBA) so that inflation does not rise.

The request was submitted, even though the Ministry of Transportation has issued Ministerial Decree (KM) of Transportation Number 142 of 2022 concerning the Amount of Additional Charges (fuel surcharge) for Passenger Tariffs for Economy Class Domestic Scheduled Commercial Air Transport which will take effect on August 4, 2022.

"I have advised them not to use the upper limit price, and also to maximize the use of flights that are still relatively empty, especially during the day," he told reporters at the DPR Building, Parliament Complex, Senayan, Jakarta, Tuesday, August 16.

Furthermore, Budi said the request had been closed and all parties had agreed on the request.

"Yesterday I had a meeting, and everyone agreed," he said.

Even so, Minister of Transportation Budi ensured that the airline's blessing could increase ticket fares without reducing public interest in using air transportation services.

"No (reducing interest), as well as optimizing domestically, especially during the afternoon, we ask the airline to maximize it at a lower price," he said.

Previously, it was reported that the Ministry of Transportation through the Directorate General of Air Transportation asked all Air Transport Business Entities or airlines serving domestic scheduled flight routes to apply more affordable fares.

Plt. Director General of Civil Aviation, Nur Isnin Istiartono, said that as a regulator, the Ministry of Transportation needs to establish policies so that airlines have guidelines in implementing passenger fares. Therefore, the Directorate General of Civil Aviation has established the KM 142 Year 2022 policy.

By imposing affordable passenger fares, said Nur Isnin, of course, it will maintain connectivity between regions in Indonesia and the continuity of air transportation services.

"As we all know, the people's purchasing power has not recovered due to the COVID-19 pandemic, but the public's need for air transportation must still be considered," said Nur Isnin, in a statement quoted on Sunday, August 7.

According to Nur Isnin, the implementation of affordable fares will also encourage people's mobility to travel via air transportation. So that later it will increase the capacity and production of air passenger, cargo and postal transportation nationally.

In terms of determining the amount of additional costs (surcharge), the Directorate General of Civil Aviation seeks to accommodate the interests of all parties with the aim of providing consumer protection, and maintaining healthy business continuity.

“Let's together contribute and collaborate in the restoration of air transportation. Especially for airlines, to comply with the applicable tariff provisions and maintain the quality of services provided in accordance with their respective service groups," he said.

Nur Isnin said the Directorate General of Civil Aviation would conduct an evaluation after three months of implementing the surcharge by the airline.