November 21, 2024 | 11:52 pm
TEMPO.CO, Jakarta - Airline ticket prices are expected to drop near the Christmas and New Year holidays. Deputy Minister of Transportation Suntana said the government is currently calculating how to achieve the target. However, he has not yet confirmed the amount of the ticket price reduction.
"We don't know. It's still being calculated. Well, we intend to reduce it," Suntana said in Jakarta, on Thursday, November 14, 2024.
According to Suntana, the government has discussed the issue with airline stakeholders. The discussion focused on various operational cost components, such as jet fuel AVTUR and other expenses. "According to calculations based on the results of the meeting, it is very likely that airfare will decrease," he said.
As a follow-up, the government previously formed the Airplane Ticket Task Force in July 2024. This task force includes the Coordinating Ministry for Economic Affairs, the Coordinating Ministry for Maritime Affairs and Investment, and other relevant ministries and institutions.
Earlier, the Minister of Tourism and Creative Economy for the 2019-2024 period, Sandiaga Salahuddin Uno, said that the prices of airplane tickets had started to decrease. "Tickets are now gradually decreasing," Sandiaga said in Central Jakarta on October 14, 2024.
The fall occurred on certain routes, including flights to Bali, which had attracted public attention due to price hikes. Sandiaga explained that flight tickets for certain periods have become more affordable, although prices for popular schedules such as night flights are still relatively high.
"Compared to the previous price of Rp3 million, Garuda Indonesia tickets have now dropped to around Rp1.4 million to Rp1.6 million. The decrease is about 45 percent," he added.
The recent increase in air ticket prices was caused by various factors, one of which was the high avtur price. Although the avtur price started to decrease on October 1, 2024, aviation observer Alvin Lie said that the decrease was not significant enough to lower ticket prices on a large scale.
In addition, the government raised the value-added tax (VAT) from 10 percent to 11 percent in April 2022, which also affected ticket prices.
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Also read: Transport Minister Targets Lower Airfares Before Christmas and New Year Holiday
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