High Airfare Prices

Government Unveils Plan to Tackle Indonesia’s High Airfare Prices

Share:

Coordinating Minister for Maritime Affairs and Investment Luhut Binsar Pandjaitan called airplane tickets in Indonesia one of the most expensive. Therefore, Luhut stated that government is preparing a strategy to reduce the ticket price.

Luhut even mentioned that after Brazil, Indonesia’s airplane tickets are the second most expensive among highly populated countries.

“Compared to ASEAN countries and highly populated countries, Indonesia’s flight ticket prices are the second most expensive after Brazil,” he said, as quoted from his Instagram on Thursday, July 11, 2024.

Luhut explained that the high price of airplane tickets was due to the recovery of flight activities after the pandemic. Based on IATA (International Air Transport Association) data, this year, there are projected to be 4.7 billion passengers globally, an increase of 200 million compared to 2019.

“We are preparing several measures for flight efficiency and ticket price reduction, such as evaluating aircraft cost operations. Cost Per Block Hour (CBH), the largest component of aircraft operating costs, needs to be identified in detail,” he said.

And it is not just stopping at identifying the problem. The government are formulating a comprehensive strategy to reduce the CBH value, taking into account the type of aircraft and flight services, to ensure a significant reduction in ticket prices.

In addition, Minister of Tourism and Creative Economy Sandiaga Uno also confirmed that the government has formed a task force to reduce airplane ticket prices. This is an effort to create more efficient airplane ticket prices in Indonesia.

“The coordination meeting has been held, and there are nine steps ahead, including the formation of a task force to reduce (the price of) airplane tickets,” Sandiaga said after the Road to: Run For Independence Day 2024 in the GBK area, Jakarta, Sunday, as reported from Antara.

Find this article helpful? Check out our other articles from Social Expat for more food and drink recommendations in Indonesia:

SEO Writer

Imelda is a content writer specializing in viral news and Indonesian culture. Her work revolves around researching and analyzing current events, social media trends, and popular culture.

Related News

A running event organised by a community in Canggu, North Kuta District, Badung Regency, has come under public scrutiny after allegations of discrimination against Indonesian citizens (WNI) circulated widely on social media. The controversy emerged after screenshots of conversations between prospective participants and the organisers were shared online. The screenshots appeared to show that applications […]

Indonesia’s Ministry of Tourism is looking to tap into the growing popularity of K-Pop by developing concert-based travel packages designed to attract more international visitors while encouraging them to explore destinations beyond the concert venue. The initiative comes as Indonesia continues to strengthen its position as an international events destination, with large-scale concerts increasingly recognised […]

A Chinese tourist who went missing while snorkelling in the waters off Kelor Island, Labuan Bajo, was found dead at a depth of 23 metres after a joint search and rescue operation on Wednesday (15 July). The victim was one of two Chinese nationals who died during the incident. The victims were identified as Guo […]

For foreign entrepreneurs, Indonesia remains one of Southeast Asia’s most compelling growth markets. The opportunity is clear. The process, however, is rarely simple. Between shifting regulations, licensing rules, local expectations, and the practical realities of doing business across a vast archipelago, setting up a company in Indonesia can take more planning than many investors expect. […]

Indonesia Guide

Just For Fun

Write For Us

Exclusive Promotions

Event Gallery