Pandjaitan to examine INACA report to Ombudsman over flight-fare

Pandjaitan to examine INACA report to Ombudsman over flight-fare

Coordinating Minister of Maritime Affairs Luhut Binsar Pandjaitan (center) told reporters here on Tuesday (July 16, 2019) that he will examine a report from Indonesia National Air Carrier Association (INACA) about an allegation of maladministration regarding the flight ticket fare regulation. (ANTARA/Ade Irma Junida/Azizah Fitriyanti)

Jakarta (ANTARA) - Coordinating Maritime Affairs Minister Luhut Binsar Pandjaitan confirmed he will examine a report from Indonesia National Air Carrier Association (INACA) to the Ombudsman over alleged maladministration regarding the flight ticket fare regulation.

“I will check it later,” he noted briefly in Jakarta on Tuesday.

Despite his brief statement, the minister was unequivocal in drawing the attention of stakeholders to not intervene in this issue. He expressed hope that all parties would cooperate to find the best-possible solution.

However, Pandjaitan implicitly called on the need to change the law regulating flight ticket fares.

“The point is we have to focus on finding the solution. If the regulations block the solution, then we need to change it. We are the one who creates it, and it is made based on the recent context. We have to make it simple, just like what the president said,” he affirmed.

It was said that INACA reported allegation maladministration to the Ombudsman RI over the issuance of Transportation Ministry Regulation No. 106 of 2019 on Upper Limit Rates (TBA) for economy-class passengers of domestic commercial flights.

The decision was based on the result of a coordination meeting by the Coordinating Ministry of Economic Affairs that has set to cut the TBA by around 12-16 percent.

Apart from cutting the TBA, the government, airline companies, and other stakeholders also agreed to provide cheaper tickets for 50 percent of the TBA for Low-Cost Carriers on certain days and hours.

However, the policy of providing cheaper tickets is not binding and regulated in details.
Related news: Fare hike causes 25-percent drop in Yogyakarta's air passenger traffic

Related news: Government urged to lower 10 percent VAT, upper limit tariff


Related news: Minister asks airlines to calculate air travel cost structure

Comments