Christina Desy

Under impetus resulting from the AirAsia QZ8501 incident, the government is now striving to boost the safety standards of domestic airlines and provide better safety for airline passengers. One measure that has been taken is the signing of a regulation which provides that the lowest ticket price that can be offered by domestic airlines must be at least 40 percent of the highest price threshold for any given flight route.
According to an official statement, the regulation that sets the 40 percent figure has been signed by Ignasius Jonan, Minister of Transportation, and is currently waiting for an official state gazette number from the Ministry of Law and Human Rights. Once the regulation comes into force, Indonesian citizens will unlikely see the cheap flight promotions that they have become accustomed to in recent times.
The current tariff formula is set under Minister of Transportation Regulation No. 59 of 2014, which states that commercial airlines may sell their cheapest ticket for a flight route at 30 percent of the highest asking price. This still represents a reduced rate, as previously the percentage was set at 50 percent.
For example, the highest asking price for a Jakarta to Pekanbaru (Riau) trip using a jet engine plane is set at IDR 1,586,000. Under the current framework, the cheapest fare that is allowed for a Jakarta-Pekanbaru route is IDR 475,800 (30 percent of IDR 1,586,000).
With a preference for lower fares, the public has severely criticized the Minister’s policy. In response to this public reaction, Sofyan Djalil, Coordinating Minister for Economic Affairs, explained that the government will not ban low-cost carriers as long as they can maintain sufficient flight safety standards.
Elaborating on his statement, Mr. Djalil also said that he expects the government will adjust the price of jet fuel in the near future. This measure might be taken to help reduce flight costs and provided room for downward movement in ticket prices.
“In doing so, the government may succeed in its endeavor of increasing flight safety while ensuring affordable prices to satisfy public demand,” said Mr. Djalil in closing his statement.
Adding to Mr. Djalil’s statement, J.A. Barata, Head of the Public Communication Center at the Ministry of Transportation, said that the Ministry will soon revise the procedures for issuing air transport licenses. Under the revised procedures, licenses will no longer be issued by the Director General of Air Transportation but by the Minister. One concern of Mr. Barata is the importance of maintaining proper administrative procedures although these should not directly impact on flight safety.
(hot/kc)