Ministry Of Transportation Cancels Revision Of Airline Ticket Upper Tariff, INACA: Weakening Of Rupiah Impacted On Operational Costs

Chairman of the Indonesia Air Carrier Association (INACA) Denon Prawiraatmadja. (Mery Handayani/VOI)

The Ministry of Transportation (Kemenhub) has not planned to revise the lower limit tariff (TBA) for aircraft tickets in the near future. The TBA and TBB revisions are proposals from airlines.

Responding to this, the Chairman of the Indonesia Air Carrier Association (INACA) Denon Prawiraatmadja said that his party would seek to revise this upper limit rate to the government.

"Kita INACA tetap berkomunikasi terus sama Kementerian Perhubungan (untuk membahas revisi tariff atas pesawat)," tuturnya kepada wartawan ditulis Rabu, 29 Mei.

Denon also mentioned the rupiah exchange rate against the US dollar which had touched at the level of Rp. 16,200 per dollar. He said this exchange rate would have an impact on the operational costs to be incurred by the airline.

"Right now, we are actually more concerned about Lintas, which has a role in the contribution of our rising transportation prices. Not only in the air, right, also at sea and so on," he explained.

Denon assessed that there needs to be communication and coordination across ministries to discuss the impact of the rupiah exchange rate on the transportation industry, including aviation.

According to him, the government can provide support to the transportation sector so that it can continue to develop amid the weakening trend of the rupiah exchange rate.

"So I think what needs to be discussed here is the currency exchange rate, how can we provide a form of support so that our air transportation still has the opportunity to develop. For example, the development of more efficient airports, which are more effective with the concept of better hub and speech arrangement," he explained.

As previously reported, Garuda Indonesia President Director Irfan Setiaputra hopes that the government through the Ministry of Transportation (Kemenhub) can review the upper limit tariff (TBA) for aircraft tickets in line with changes in external conditions in the last five years.

Irfan said that the exchange rate and the volatile avtur price are challenges for Garuda Indonesia. The two external components, he said, had a big influence on costs (cost).

"Therefore, we are also discussing with the Ministry of Transportation to ask for a review, see this TBA. This means that TBA should not increase for five years. This is an exchange rate compared to five years ago how much, the price of the avtur compared to five years ago how much," said Irfan, Monday, May 13.

If the upper limit for aircraft tickets has not changed or has not increased since it was set in 2019, Irfan is worried that all airlines will face similar problems.

Our proposal is more flexible in external conditions. Exchange rate or avtur price, we can't control it. We also can't ask Pertamina to continue to give discounts, that's not the way, right," he said.