Luhut to INACA on Airlines Tariff: Let's Not Fight

TEMPO.CO, Jakarta - Coordinating Minister for Maritime Affairs Luhut Binsar Pandjaitan responded to a report filed by Indonesia National Air Carriers Association or INACA to Ombudsman regarding regulation on the reduction of airlines tariff. Luhut said some parties should not fight over the matter and create a new problem.

“We should not fight over the problems,” said Luhut in his office, Central Jakarta, Tuesday, July 16.

In response to the government’s position that was considered to not having a legal basis to lower airfare, Luhut asked several stakeholders to find a solution. For example, revising the current policy to make it more relevant to the decision that would be made.

“If there is a regulation that hinders solutions, just amend it to be updated. On how to make it simple,” he added.

Previously, INACA reported the government to Ombudsman Indonesia related to the alleged maladministration in light of the regulation on prices of airline tickets. The association questioned two government’s policies that they deemed to have intervened aviation corporation too far.

The two regulations are the reduction of the upper limit tariff (TBA) up to 16 percent and the provision of cheap flights for low-cost carrier or LCC, which is set at 50 percent below the TBA.

The Coordinating Ministry secretary Susiwijono Moegiarso meanwhile said that the government’s decision to lower airlines tariff was based on the Ministerial Decree No. 106 of 2019. Besides, a policy concerning fiscal incentives to airlines in a bid to cut airplane ticket prices has been discussed in a draft bill which its ratification pending on the President’s signature.

FRANCISCA CHRISTY ROSANA