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High airfares, Minister Sandiaga Uno asks people to seek deals

Tempo - December 12, 2023

Riri Rahayu, Jakarta – Indonesian Tourism and Creative Economy Minister Sandiaga Uno acknowledged that high airfare remains a significant issue in the country, particularly ahead of the Christmas and New Year holidays. He thus advised people to look for promotions to get low prices.

"Explore promotions offered by online travel agencies, tour operators, and service providers," Sandiaga at his office on Monday, Dec. 11. "Because it turns out that if we look deeper, there are still many who are offering tickets at affordable prices."

He also claimed that the government was working to address the problem, such as by increasing the number of flights, including to tourist destinations in the eastern part of the country.

Previously, State-Owned Enterprises or SOE Minister Erick Thohir said the high price of air tickets was caused by the lack of airplanes in operation. "The Transportation Minister (Budi Karya Sumadi) said there are 400 [planes in service], while the need is 700," Erick said on Thursday, Nov. 23.

Bank Indonesia Governor Perry Warjiyo also expressed his concern about the high ticket prices when he visited Wakatobi and Raja Ampat last March. He warned that the surge in administered prices could lead to inflation, and the issue needed to be addressed collectively.

Meanwhile, a spokesperson for the Transportation Ministry, Adita Irawati, told Tempo on March 6 that the increase in airfares was not a problem as long as it was still within the price ceiling and floor (TBA and TBB), which can fluctuate based on factors such as aviation fuel prices by around 30 percent, maintenance costs by 20 percent, and other expenses.

Source: https://en.tempo.co/read/1808487/high-airfares-minister-sandiaga-uno-asks-people-to-seek-deal