Sandiaga Uno Denies Avtur Is The Cause Of Expensive Airline Ticket Prices

Minister of Tourism (Photo: Doc. Antara)

JAKARTA - Minister of Tourism and Creative Economy (Menparekraf) Sandiaga Uno denied the findings of the Business Competition Supervisory Commission (KPPU) which stated that the high price of aviation fuel was a factor in the high price of aircraft in Indonesia.

Sandiaga said that aviation fuel is only one of the factors in the formation of aircraft prices. Apart from aviation fuel, said Sandiaga, there are several significant taxes and PNBP levies that also contribute to aircraft ticket fees.

"The structure is not only aviation fuel, but also taxes. That's the result of the discussion at the time the meeting did not contribute more significantly than the increase or high price of plane tickets," he said at the Coordinating Ministry for Maritime Affairs, Jakarta, Wednesday, February 7.

Sandiaga said that for cases in Indonesia, the cause of the increase in aircraft ticket prices last year was due to the limited number of aircraft. This, he said, caused an imbalance between supply and demand.

"That's the main factor why ticket prices were expensive last year and continued to the beginning of this year," he explained.

To reduce the price of airplane tickets, continued Sandiaga, Indonesia needs to add 700 more aircraft. That way, there will be an increase in the number of flights and the availability of seats.

"The increase in the number of aircraft and the availability of seats have a more real impact on decreasing aircraft ticket prices," he said.

Previously, KPPU revealed that the high price of aviation fuel was the main cause of the increase in aircraft ticket prices in Indonesia. In fact, the contribution reached 38 to 45 percent.

KPPU also revealed that the price of avtur in Indonesia is higher when compared to the prices at 10 other international airports. The difference reached 43 percent in the period December 2023.