JAKARTA - The government has officially given permission to national airlines to increase domestic air tickets in the range of 9 percent to 13 percent.
Responding to this, the Economic Policy Analyst of the Indonesian Employers Association (Apindo) Ajib Hamdani assessed that the increase was still relatively high, but it was still quite high compared to the national inflation target which was in the range of 2.5 percent plus minus 1 percent.
"I think this way, 9-13 percent I think is also relatively high, actually relatively high if we compare it with inflation in general," he said, quoted Thursday, April 9.
He added that ideally, the increase in ticket prices is at a level that is in line with inflation, namely around 3.5 percent, however, the significant increase in jet fuel prices is the main factor that drives the increase.
"So of course our hope is that even if the ticket price increase is 3.5 percent, ideally. But then, if you look at the fact that the price increase is quite significant, we certainly want to hope that the economy will remain good and not provide too deep construction," he said.
He emphasized that current global uncertainties, especially related to energy prices, make it difficult to predict when jet fuel prices will return to normal.
However, Ajib said that if geopolitical tensions eased and global energy prices decreased, it was hoped that the price of avtur could also be adjusted so that the tariff would return to normal.
"Then the geopolitical tension has dropped enough, for example, so when energy prices fall, our hope is that the price of aftur will also be adjusted. So that the relative price is back to normal. That is our hope," he explained.
Regarding the increase in jet fuel prices, he added that this was a consequence of the increase in world energy prices due to geopolitical dynamics, including the situation in the Middle East, which is still very volatile and has an impact on the energy sector.
"This is a consequence of the soaring world energy prices, because if we look at it, the dynamics in Iran are still dynamic. We don't know the end and of course to mitigate our fiscal conditions to be healthier, our domestic economic conditions are also more adaptable, the reality is there are several prices that need to be resolved, including the afturnya," he said.
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