Jakarta –
The government has decided to reduce domestic airline ticket prices during the Christmas and New Year (Nataru) 2024/2025 period. This policy is a direct direction from President Prabowo Subianto to help the public in reducing the burden on ticket prices at all airports in Indonesia.
“Yesterday, President Prabowo held a ratas (limited meeting) with the Minister of Transportation and a number of Ministers at the Merdeka Palace to discuss reducing plane ticket prices during the Christmas period. As a result, the Government agreed to reduce plane ticket prices for domestic flights by 10 percent during Christmas, at all airports in Indonesia,” said Ministry of Transportation spokesperson Elba Damhuri in a written statement, Wednesday (27/11/2024).
Elba explained that to accommodate ticket reductions (without reducing VAT), the role of airlines, PT Angkasa Pura Indonesia, PT Pertamina and Airnav is needed to reduce fuel surcharges, PJP2U and aviation fuel at several airports so that overall tariff reductions can be implemented with a target of reducing ticket prices by at least 10 %.
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The tariff adjustment will apply for 16 days during the 2024/2025 Christmas period, December 19 2024 to January 3 2025 for unsold tickets. “For passengers who have purchased tickets for flights during that period, incentives can be given according to each airline’s policy if this is still possible,” said Elba.
Elba hopes that this policy will be good news for Indonesian people who will travel by plane during the Christmas period. He also believes that this decision will be able to boost the domestic economy and tourism in the last quarter of 2024.
Furthermore, Elba said that PT Pertamina Persero Group would provide support for reducing aviation fuel prices during the 2024/2025 Christmas period at 19 airport locations. The details are Denpasar, Surabaya, Medan, Silangit, Lombok, Labuan Bajo, Manado, Yogyakarta Kulon Progo, Pontianak airports.
Then, Ambon, Makassar, Balikpapan, Kupang, Sorong, Timika, Jayapura, Maumere, Nabire, Biak). PT Pertamina Persero Group will provide 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 selling price of avtur at Soekarno-Hatta Airport (CGK). If there is an increase in the selling price of avtur in December 2024, it will not have an impact on airlines serving the public,” he said.
Then regarding the reduction in airport service rates, PT Angkasa Pura Indonesia and all UPBU (Airport Service Units) under the auspices of the Ministry of Transportation, will provide support for reducing 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 include CGK and DPS. Airlines agreed to provide jet fuel surcharge discounts of 8% (to 2%) and propeller discounts of 5% (to 20%).
Meanwhile, AirNav will provide advance and extend services during the Christmas period to support longer operating hours according to airline needs.
Based on the analysis and calculations carried out, in the event that there is a jet fuel surcharge discount of 8% (to 2%) and a propeller discount of 5% (to 20%), a PJP2U discount of 50% and PJP4U of 50%, as well as taking into account the route and flight volume So, on a weighted average basis, there will be a decrease in air ticket rates of around 10%.
“It should be noted that the analysis and calculation of ticket price reductions does not include VAT incentives, considering that this is the authority of the Ministry of Finance,” concluded Elba.
(ily/hns)
Holiday Cheer: Indonesia’s Ticket Price Reduction!
Jakarta – Well, festivity enthusiasts, buckle up! The Indonesian government, led by none other than President Prabowo Subianto, has decided to sprinkle a little holiday magic by reducing domestic airline ticket prices by a whopping 10% during the Christmas and New Year (Nataru) period of 2024/2025! Talk about a festive flight experience—if only my dance moves could also take off like those prices!
According to the Ministry of Transportation’s spokesperson, Elba Damhuri, this decision comes hot on the heels of a ratas (that’s government speak for a really serious huddle) with the Minister of Transportation. You might think that’s where they discuss international diplomacy or environmental policies, but no, it’s all about making it a little cheaper to fly home for the holidays. Who knew? Maybe all that talk about compounds and aviation fuel just needed a sprinkle of festive spirit?
Now, before you start booking your flights and planning your great escape from Auntie’s questionable Christmas pudding, here’s the crux of the deal: the price reduction will apply from December 19, 2024, to January 3, 2025, but only for those poor unsold tickets. If you’ve snagged your tickets early and your luck isn’t flying high, airlines might offer you a lovely incentive—if they feel up for it. Just like lottery winnings, it seems a bit hit or miss.
Elba’s not just here for the holiday jokes, though. She explains that the airlines, along with key players like PT Angkasa Pura Indonesia and PT Pertamina (that’s the fuel gang), are kicking things up a notch to make sure fares are more friendly. They’re cutting fuel surcharges, aviation fuel prices, and then tossing in airport service charges. They’re basically the Alex Trebek of the airline industry, presenting the audience with the question: “What can we do to make flying a bit less like paying for a luxury yacht?”
And if you thought this was merely a gift to the consumers, think again! Elba believes it’s also a nifty little booster for the Indonesian economy and tourism sector. Because let’s be honest, nothing screams ‘invest in the economy’ like holiday travel—especially if it cuts down on the number of YouTube videos featuring sad travelers complaining about overpriced tickets. I mean, who doesn’t want to be that guy wearing an ugly Christmas sweater while sipping airport coffee and racking up the Instagram likes?
Now, let’s get into some juicy details. The price of aviation fuel is supposed to be reduced by a tantalizing 7.5% to 10% at 19 chosen airports. Yes, that includes the tourist hotspots like Labuan Bajo and the ever-popular Bali. PT Pertamina, the purveyors of fine fuel, are stepping up to take some of the strain off our wallets. And folks, if the fuel prices rise come December, the airlines will still be expected to tuck the unsuspecting traveler into bed nicely without charging them extra. Good luck with that!
Additionally, the government seems to think they can work some magic on airport service rates too, slashing them down to 50% across the board. Yes, you heard it right—50%! It’s like a holiday sale, but for your ability to actually get onto a plane without a second mortgage.
However, let’s not get too carried away. While everyone is pushing for these discounts, somewhere lurking in the shadows is the Ministry of Finance, reminding everyone that VAT incentives are just not on the holiday menu this year. So, if you’re hoping to cut a little extra off the top, you might want to unroll that wish and save it for next season.
In conclusion, folks, this is an initiative designed not just to keep your festive spirit afloat but also to boost the Indonesian economy—one 10% flight reduction at a time. So grab your tickets, pack your bags, and prepare to experience the joys of holiday travel without having your wallet sob uncontrollably at every airport you visit. Just remember, if you see a flight deal too good to be true, check for hidden fees first. That’s how they get you!
Happy Holidays and safe travels!
Jakarta –
In a significant move to ease travel expenses during the festive season, the Indonesian government has announced a reduction in domestic airline ticket prices for the upcoming Christmas and New Year (Nataru) 2024/2025 period. This decision comes directly from President Prabowo Subianto, who aims to alleviate the financial burden on the public associated with air travel across all Indonesian airports.
Following a limited meeting held at the Merdeka Palace, President Prabowo convened with the Minister of Transportation and various other ministers to thoroughly discuss solutions for lowering plane ticket prices during the Christmas season. Ministry of Transportation spokesperson Elba Damhuri confirmed that the government has made a firm agreement to reduce domestic flight ticket prices by 10% from December 19, 2024, to January 3, 2025, at every airport in Indonesia.
To accomplish these reductions without diminishing the value-added tax (VAT), collaboration among key stakeholders—including airlines, PT Angkasa Pura Indonesia, PT Pertamina, and Airnav—is crucial. These entities will be instrumental in lowering fuel surcharges and aviation fuel prices at several airports, ensuring the overall tariffs can be reduced significantly.
The announced tariff adjustments will remain in effect for a total of 16 days throughout the holiday season. Furthermore, for passengers who have already booked tickets for flights within that period, airlines may offer specific incentives, subject to their individual policies and feasibility.
Elba expressed optimism that this initiative would provide positive news for the Indonesian populace planning to travel by air during the festive period, believing it could stimulate the domestic economy and enhance tourism activities in the final quarter of 2024.
In addition, PT Pertamina Persero Group has committed to supporting the reduction of aviation fuel prices across 19 major airport locations, including Denpasar, Surabaya, Medan, and Labuan Bajo, among others. They plan to lower the selling price of avtur by 7.5% to 10% during the holiday season.
As a result, once this price reduction is implemented, the cost of avtur is expected to align closely with the selling price at Soekarno-Hatta Airport (CGK). Notably, any potential increase in avtur prices during December 2024 should not affect airlines serving the public, according to Elba.
Moreover, PT Angkasa Pura Indonesia, alongside all Airport Service Units (UPBU) under the Ministry of Transportation’s regulation, will provide significant support by cutting PJP2U rates and PJP4U rates by 50%. However, the inclusion of CGK and DPS is still pending confirmation from the Ministry of BUMN.
Furthermore, airlines have agreed to implement fuel surcharge discounts, providing a noteworthy 8% reduction for jet fuel and up to 20% for propeller discounts. During the holiday period, AirNav will extend essential services to accommodate longer operating hours as required by various airlines.
A comprehensive analysis indicates that with the proposed discounts in jet fuel surcharges and airport service fees factored in, passengers can expect a weighted average reduction in airline ticket rates of approximately 10%. Importantly, this calculation does not take into account VAT incentives, as this falls under the jurisdiction of the Ministry of Finance.
(ily/hns)
