Responding To President's Request To Lower Airline Ticket Prices, Minister Of SOEs Expects PMN Garuda Indonesia Rp7.5 Trillion To Disburse Immediately

JAKARTA - Minister of State-Owned Enterprises (BUMN) Erick Thohir revealed a number of steps so that national airlines can stabilize air ticket prices. One of them is by encouraging the airline PT Garuda Indonesia (Persero) Tbk to increase its flight volume.

This is in response to President Joko Widodo's (Jokowi) order to immediately resolve the problem of high ticket prices in the country.

"So if Garuda can be even more productive in the number of planes, so that the reduction in ticket price stability can be balanced," he said in an official statement, in Jakarta, Thursday, August 18.

Given the importance of immediately increasing flight volume, Erick hopes that the state investment (PMN) of Rp7.5 trillion will soon be disbursed for Garuda.

With this capital, Erick is optimistic that he will be able to make Garuda competitive in business while being able to maintain affordable aircraft prices for the people.

"We hope that Garuda (PMN) will be liquidated soon, let alone we see that the aviation industry must be protected, especially since the price of airline tickets is very expensive," said Erick.

Erick explained that there were three things that caused the current high ticket prices. The first is the skyrocketing aviation fuel price. Second, certain destination areas where the number of aircraft is not maximal. Then the last factor is the number of aircraft to be purchased is difficult.

"Today Boeing and Airbus will reduce their production," he said.

Although these factors are burdensome, Erick is optimistic that Garuda will be able to take advantage of the momentum of the aircraft industry's revival as well as play a role in maintaining affordable prices for the people.

Previously, President Joko Widodo (Jokowi) admitted that he had received complaints regarding the high ticket prices when he went to the field. Responding to the complaint, Jokowi asked Transportation Minister Budi Karya Sumadi and SOE Minister Erick Thohir to resolve the issue.

"In the field, I also heard complaints, sir, the price of the plane, sir. I reacted immediately, there was the Minister of Transportation, I ordered this to be completed immediately," he said at the opening of the 2022 National Coordination Meeting for Inflation Control, reported by the Presidential Secretariat YouTube, Thursday, 18 August.

On the occasion, the former Governor of DKI Jakarta also asked the Minister of SOEs Erick Thohir to increase the number of Garuda Indonesia airliners.

The addition of this fleet, said Jokowi, aims to reduce the price of expensive airline tickets. Although Jokowi admits that it is not easy to return ticket prices to normal numbers, considering that international aviation fuel prices are also high.

"Garuda, the Minister of SOEs, I also convey that I will immediately add more planes so that prices can return to normal, even though it is not easy because the international avtur price is also high," he said.