Jakarta –
The government has decided to reduce domestic airline ticket prices during Christmas and New Year (Nataru) 2024/2025. This policy is a direct instruction from President Prabowo Subianto to help the public by reducing the burden of ticket prices at all airports in Indonesia.
“Yesterday, President Prabowo held a ratas (limited meeting) with the Minister of Transport and several ministers at the Merdeka Palace to discuss the reduction of plane ticket prices during the Christmas period. As a result, the Government agreed to reduce the prices of plane tickets for domestic flights by 10 percent during Christmas, at all airports in Indonesia,” said Ministry of Transport spokesperson Elba Damhuri in a written statement, Wednesday (27/11/2024).
Elba explained that in order to accept the reduction of tickets (without reducing VAT), the role of airlines, PT Angkasa Pura Indonesia, PT Pertamina and Airnav is needed to reduce fuel costs, PJP2U and aviation fuel at several airports. reduction so that overall tax reductions can be implemented with a target of reducing ticket prices by at least 10%.
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The tariff change will apply for 16 days during the Christmas period 2024/2025, 19 December 2024 to 3 January 2025 for unsold tickets. “For passengers who purchased tickets for flights during that period, incentives may be provided according to each airline’s policy if still possible,” Elba said.
Elba hopes that this policy will be good news for Indonesians who travel by plane during Christmas. He also believes that this decision will be able to boost the domestic economy and tourism in the last quarter of 2024.
In addition, Elba said that PT Pertamina Persero Group will provide support to reduce aviation fuel prices during the Christmas period 2024/2025 at 19 airport locations. The airport details are Denpasar, Surabaya, Medan, Silangit, Lombok, Labuan Bajo, Manado, Yogyakarta Kulon Progo, Pontianak.
Then, Ambon, Makassar, Balikpapan, Kupang, Sorong, Timika, Jayapura, Maumere, Nabire, Biak). PT Pertamina Persero Group will support in Nataru by reducing the selling price of avtur in the range of 7.5% to 10%.
“The price of avtur after the price reduction will be close to the sale price of avtur at Soekarno-Hatta Airport (CGK). serving the public,” he said.
Then regarding the reduction in airport service rates, PT Angkasa Pura Indonesia and all UPBUs (Airport Service Units) under the auspices of the Ministry of Transport, will support the reduction of PJP2U rates to 50% and PJP4U rates to 50%.
However, PT Angkasa Pura Indonesia still needs confirmation from the Ministry of BUMN to be able to incorporate CGK and DPS. Airlines agreed to provide jet fuel cost discounts of 8% (to 2%) and propeller discounts of 5% (to 20%).
At the same time, AirNav will provide services in advance and will extend during the Christmas period to support longer working hours according to the needs of the airline.
Based on the analysis and calculations made, if there is a jet fuel cost discount of 8% (to 2%) and a propeller discount of 5% (to 20%), a PJP2U discount of 50% and a PJP4U discount of 50%, a as well as taking into account the route and size of the flight So, on a weight average basis, the reduction in air ticket rates will be around 10%.
“It should be noted that the analysis and calculation of ticket price reductions does not include VAT incentives, as this is the authority of the Ministry of Finance,” concluded Elba.
(ily/hns)
2024-11-27 10:50:00
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**How might the government measure the success of this fare reduction initiative, and what specific indicators will they be tracking?**
## Interview: Christmas Ticket Prices in Indonesia
**Host:** Welcome to World Today News, where we analyze the news affecting you. Today we’re discussing the recent announcement of reduced domestic airline ticket prices in Indonesia for the upcoming Christmas and New Year holiday season. Joining us are Elba Damhuri, spokesperson for the Ministry of Transport, and Rina Yanti, travel industry analyst and founder of TravelWise Indonesia. Welcome both of you.
**Elba/Rina:**
Thank you for having us.
**Host:** Mr. Damhuri, could you elaborate on the rationale behind the government’s decision to reduce airfares during this festive period?
**Elba:** Certainly. The President, being mindful of the financial strain many Indonesian families face during the holidays, instructed us to explore ways to alleviate travel costs. Reducing airfares is a direct response to this, aiming to make travel more accessible and allow families to celebrate together.
**Host:** Ms. Yanti, what is your perspective on this decision? Do you believe it will significantly impact travel patterns and the tourism industry during the holidays?
**Rina:** This is indeed a bold move by the government and could undoubtedly have a positive impact. Christmas and New Year are already peak travel seasons, and this reduction could further incentivize domestic travel. It presents a wonderful opportunity for tourism businesses to capitalize on increased demand and revitalize the sector following the pandemic.
**(Section: Impact on Stakeholders)**
**Host:** Mr. Damhuri, how will this fare reduction be implemented? Will it apply to all airlines operating in Indonesia, and what are the key factors contributing to achieving this 10% reduction target?
**Elba:** The reduction applies to all airlines operating domestically. This collaborative effort involves multiple stakeholders, including PT Angkasa Pura Indonesia, Airnav, and PT Pertamina. These partners are committed to reducing airport service fees, aviation fuel costs, and operational charges, which collectively contribute to the overall ticket price.
**Host:** Ms. Yanti, how do you foresee this initiative impacting different stakeholders within the travel and tourism industry – airlines, travel agencies, hotels, and local businesses?
**Rina:** This is a multi-pronged benefit situation. Airlines may see an increase in bookings due to the reduced fares, potentially offsetting the initial impact of lower ticket prices. Travel agencies can expect a surge in bookings, while hotels and restaurants in popular tourist destinations stand to gain from increased visitor numbers.
**(Section: Sustainability and Long-Term Effects)**
**Host:** Mr. Damhuri, is this a one-time initiative for the holiday season or part of a broader, long-term strategy to make air travel more affordable for Indonesians?
**Elba:** While this current initiative is specifically geared towards the Christmas and New Year period, the government recognizes the need for sustainable solutions to make air travel more accessible for the people. This initiative serves as a starting point for exploring innovative ways to achieve this goal in the long run.
**Host:** Ms. Yanti, considering potential economic challenges, do you see long-term sustainability in this approach? Are there any potential drawbacks or unintended consequences we should be aware of?
**Rina:** While laudable, the sustainability of such price reductions hinges on several factors, including continued collaboration between stakeholders and responsible pricing strategies by airlines. A key concern is the potential for overcrowding during peak travel periods, stressing airport infrastructure and services. Careful planning and management are crucial to mitigate such consequences.
**Host:** Thank you both for sharing your valuable insights. This policy undoubtedly provides much-needed relief for travelers during the holiday season while also stimulating economic activity. We hope it paves the way for a more accessible and sustainable air travel ecosystem in Indonesia.
**(Conclusion)**
