Indonesia introducing new legislation to curb high airfares
Indonesia’s transport ministry is preparing to roll out new legislation on airfares in the coming months.
The draft regulations are in the final stage although the ministry’s spokesman Hengki Angkasawan declined to disclose the details.
The ministry has taken this step after its dissatisfaction following recent calls for airlines to reduce airfares.
Coordinating maritime affairs minister Luhut Pandjaitan voiced his disappointment at the country’s airlines for not doing enough to ensure fares are affordable.
State owned Garuda was ordered to reduce fares although this hasn’t happened to the extent the government had hoped while privately run carriers have not followed suit.
The relatively high prices have led to a big dip in domestic tourism with hotel occupancy down by about 40% in some destinations.
Garuda Indonesia Group airlines which include Citilink and Sriwijaya Air cut their fares by an average 20% in February
Hengki said ministry officials and executives from the airlines met last week to discuss airfares and airline representatives have been consulted on the impending legislation.
"We will release the new regulation soon," Hengki said.
Indonesia has existing legislation in place determining a ceiling price of airfares on certain high traffic routes.
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