It was the result of an agreement, not from us. The meeting was attended by regulators from the Ministry of Transportation, the Ministry of State Enterprises and the leaders of Garuda Indonesia and Lion Ai
Jakarta (ANTARA) - The policy relating to airline tariffs was made in accordance with an agreement with stakeholders, Coordinating Minister for Economic Affairs Darmin Nasution has said.

Therefore, there should be nothing disturbing about the implementation of the result of the technical meeting that had been agreed to before, Darmin said here Wednesday.

"It was the result of an agreement, not from us. The meeting was attended by regulators from the Ministry of Transportation, the Ministry of State Enterprises and the leaders of Garuda Indonesia and Lion Air," he said.

The policy on reducing ticket prices for certain routes and flight schedules was also made after the airlines requested it, Darmin stressed.

The government was not taking sides with the public and the airlines in this matter, because the policy had been formulated and agreed upon together, he said.

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Earlier, the Indonesian National Aviation Company Association (INACA) reported an allegation of maladministration to the Indonesian Ombudsman with regard to the issuance of a transportation ministerial decision concerning upper limit rates for passengers of economy class services for scheduled domestic commercial air transportation.

The decision was based on the result of a coordination meeting by the Economic Coordination Ministry which had decided to change the upper limit rates with a decrease of 12 to 16 percent.

In addition to reducing the upper limit rates, the government together with the airlines and related stakeholders also agreed to provide cheap tickets at 50 percent the upper limit rates for low-cost airline flights (LCC) on certain hours and days.

However, the policy on providing cheap tickets needs more detailed and binding regulations.

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Translator: Satyagraha/Bambang Purwanto
Editor: Sri Haryati
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