High Airfare Prices

Government Unveils Plan to Tackle Indonesia’s High Airfare Prices

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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.

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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.

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