Govt Wil Not Subsidize Airfares: Minister

Jakarta: Transportation Minister Budi Karya Sumadi said the government would not subsidize tickets for scheduled commercial airline services.
 
"There will be no (subsidizing of airplane tickets)," Budi said on the sidelines of a coordination meeting of the ministry's Director General of Sea Transportation on Monday.
 
But the Minister of Transportation has appealed to airlines to provide varied prices and affordable rates for the community.

The Ministry of Transportation has previously issued Ministerial Decree number 20/2019, concerning procedure and formulation of ceiling ticket price for economy class passenger of domestic flight and Ministerial Decree Number 72/2019, concerning ceiling price for domestic economy class passenger.
 
Under ministerial decree number 20/2019, the floor price which was originally 30 percent from the ceiling price becomes 35 percent of the upper limit tariff.
 
The regulation is aimed at avoiding tariff war among airlines, which for the past five years have been competing to set the lowest tariff.
 
However, with the lower limit, the airline cannot set the lowest price as before, because the lowest price has been increased by five percent, especially for low-cost carriers (LCC).
 
For this reason, the Minister of Transportation has asked airlines to offer discounts to the public, so as to not overburden them.
 
A number of airlines that are offering discounts are Garuda Indonesia and Lion Air, including discounts up to 50 percent, but for a limited time period.
 
The Central Statistics Agency (BPS) recorded a growth of 6.12 percent in the number of foreign tourist arrivals in Indonesia in February 2019, reaching 1.27 million, compared to 1.2 million in February 2018.
 
During the January-February 2019 period, 2.48 million foreign tourists had arrived in the country, an 8.19 percent rise, as compared to 2.3 million during the same period in 2018,
 
In February 2019, Malaysian tourist arrivals had reached 275.3 thousand, up 33.67 percent than that in February 2018. China stood second, with 200.9 thousand tourists, or a decrease of 6.31 percent, as compared to that during the corresponding period last year. Singapore was placed third, with 147.9 thousand tourists, or a 17.86 percent rise. (Antara)
 
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