Jakarta (ANTARA) - State-Owned Enterprises (SOEs) Minister Erick Thohir urged Indonesian flag carrier PT Garuda Indonesia (Persero) to provide affordable air tickets for the people.

In a statement on Wednesday, Thohir said he seeks to have Garuda become productive once again in terms of the number of aircraft in operation.

Thus, the current air ticket that is considered to be expensive can be balanced through strategic steps by SOEs.

According to Thohir, three components cause a hike in air ticket prices.

These factors comprise the high jet fuel price as a result of expensive global crude oil, the number of planes operated not being optimal, and difficulties faced by the airline to purchase aircraft in the wake of Boeing and Airbus having reduced their production.

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The minister is optimistic that Garuda would be capable of utilizing the momentum of the aircraft industry's revival while also keeping the prices affordable for the public despite the hurdles posed by the three components.

The State Capital Provision (PNM) serves as a stimulus for Garuda to increase flight volume. Through the capital, Garuda can compete and maintain affordable prices for the public, he affirmed.

Earlier, the Transportation Ministry had urged airlines to provide air tickets at affordable prices to maintain connectivity between regions in Indonesia and the continuity of air transportation service.

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According to Transportation Minister's Decision No. 142 of 2022 issued on August 4, 2022, the government allows airlines to impose additional jet tariff to a maximum of 15 percent of the upper limit tariff.

Meanwhile, for propeller aircraft, it is a maximum of 25 percent of the upper limit tariff.

President Director of Garuda Indonesia Irfan Setiaputra deemed that the policy serves as a reminder for all air transportation service industry actors to align performance acceleration steps while maintaining compliance commitment toward flight business regulation.

This included implementation of the ticket price components that refer to applicable regulations to continue to improve quality air transportation service for the people.

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Translator: Sugiharto P, Fadhli Ruhman
Editor: Fardah Assegaf
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