The Upper And Lower Limit Tariffs For Airplane Tickets Are Being Evaluated By The Ministry Of Transportation

Illustration. (Photo: Doc. Antara)

JAKARTA - The Ministry of Transportation (Kemenhub) evaluates the upper limit tariff (TBA) and scheduled aircraft ticket fares (TBB), following the proposal of the Indonesian National Aviation Company Association for the government to release the issue mechanism.

"Regarding tariffs or tickets, the government is indeed evaluating," said Secretary General of Air Transportation at the Ministry of Transportation Sigit Hani Hadiyanto on the sidelines of Indonesia AERO Summit 2024 in Jakarta, quoted from Antara, Wednesday, July 3.

Sigit said that the study was still being carried out in line with the proposal from the airline through the Indonesia National Air Carrier Association (INACA).

Even so, Sigit did not explain more deeply regarding the evaluation of the upper and lower limit rates.

"Indeed, now the upper and lower limit rates apply. However, INACA's aspirations will later become considerations," he explained.

Meanwhile, INACA Chairman Denon Prawiraatmadja hopes that the Ministry of Transportation can decide that the rules for aircraft ticket prices no longer refer to the upper limit (TBA), but are in accordance with market mechanisms.

"Indeed, we hope that the ticket fee will be handed over to the community mechanism," said Denon.

Even so, Denon admitted that his party understands that the government has determined that TBA and TBB are for the sake of affordability and protecting the community as consumers.

In addition, upper and lower limit rates are applied so that there is no practice of selling losses (predatory pricing).

"So, that's where the function is 'government' so that this economic balance can be maintained and the business climate remains healthy," he said.

Denon added that the government had also accepted INACA's proposal regarding the revision of the upper and lower limit rates.

"We have also received a positive response from the Ministry of Transportation. We are waiting for the ministry's answer, so that this tariff can vary its solution, not be generalized. This may be what we are trying to do," said Denon.

Previously, Garuda Indonesia President Director Irfan Setiaputra hoped that the government could review the flight ticket high tariff (TBA) in line with changes in external conditions in the last five years.

Irfan said that the exchange rate and the volatile avtur price became a challenge because of their large influence on costs (cost).

"Therefore, we discussed that TBA should be studied. This means that TBA should not increase for five years because the exchange rate and avtur price for the last five years have also changed," he said.

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

"Our proposal is more flexible in external conditions. The 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 it is," he said.