Jakarta, Indonesia Sentinel — The Indonesian government has announced a reduction in domestic airplane ticket prices by 10% during the Christmas and New Year travel period for 2024/2025. This decision follows direct instructions from President Prabowo Subianto aimed at alleviating travel costs for citizens across all airports in the country.
“President Prabowo held a limited meeting with the Minister of Transportation and several other ministers at the Merdeka Palace to discuss lowering airfares during the Nataru period. As a result, the government has agreed to reduce domestic airplane ticket prices by 10% across all airports in Indonesia,” said Transportation Ministry spokesperson Elba Damhuri in a written statement on Wednesday, November 27, 2024.
The adjusted prices will apply for 16 days, from December 19, 2024, to January 3, 2025, and only for tickets that have not yet been sold. “Passengers who have already purchased tickets for this period may receive incentives based on each airline’s policies, if feasible,” Elba noted.
Coordinated Efforts to Lower Costs
Elba explained that implementing the fare reduction requires coordinated efforts from airlines, PT Angkasa Pura Indonesia, PT Pertamina, and AirNav Indonesia. These entities will reduce fuel surcharges, passenger service charges (PJP2U), and aviation fuel prices at several airports to meet the target of at least a 10% reduction.
Supporting the initiative, PT Pertamina Persero Group has committed to reducing aviation fuel prices by 7.5% to 10% at 19 airports, including Denpasar, Surabaya, Medan, Silangit, Lombok, Labuan Bajo, Manado, Yogyakarta Kulon Progo, and Pontianak. Other locations include Ambon, Makassar, Balikpapan, Kupang, Sorong, Timika, Jayapura, Maumere, Nabire, and Biak.
“After the reductions, aviation fuel prices will be aligned with those at Soekarno-Hatta International Airport (CGK). Any potential increases in fuel prices in December 2024 will not impact airlines serving public routes,” Elba assured.
PT Angkasa Pura Indonesia and airport service units (UPBU) under the Ministry of Transportation will provide a 50% reduction in passenger service charges (PJP2U) and apron service charges (PJP4U). However, Angkasa Pura Indonesia is awaiting confirmation from the Ministry of State-Owned Enterprises to include reductions at Soekarno-Hatta (CGK) and Ngurah Rai (DPS) airports.
Airlines have agreed to cut jet fuel surcharges by 8% (to 2%) and propeller surcharges by 5% (to 20%). AirNav Indonesia will extend operational hours during the holiday period to meet increased flight demands.
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Based on comprehensive analysis, the combined efforts—discounted jet fuel and propeller surcharges, reduced passenger service charges, and adjustments for routes and flight volumes—are expected to result in a weighted average airfare reduction of approximately 10%.
“It should be noted that the fare reduction calculations do not yet include potential VAT incentives, as this falls under the authority of the Ministry of Finance,” Elba concluded.
Elba expressed hope that the reduction in domestic airplane ticket prices would bring good news to Indonesians planning air travel during Christmas and New Year holiday. She believes the initiative will also boost the domestic economy and tourism sector in the final quarter of 2024.
(Raidi/Agung)
