"The government has decided that domestic airfare will be reduced by 10 percent. Hence, we are encouraging domestic tourism to increase," Airlangga remarked during the Indonesian Chamber of Commerce and Industry (Kadin) national leadership meeting here on Sunday (Dec 1).
To boost domestic tourism, President Prabowo Subianto also instructed the opening of new flight routes, such as to the Tanjung Kalayang Special Economic Zone in Bangka Belitung Island.
During a meeting with the president, Airlangga highlighted that Indonesia will also open regional flights with the aim of boosting tourist arrivals.
"For example, the economic area in Tanjung Kelayang on Bangka Belitung Island. If there are no flights, it is difficult for tourists to come because they have to transit in Jakarta first, then to Bangka Belitung or to Palembang first (before arriving at their final destination). In fact, regionally, tourists can come directly if flights are opened," he explained.
In carrying out the airfare reduction policy, he emphasized that the government always maintains the principle of equality in the domestic aviation industry.
Indonesia's current aircraft fleet, which is fewer than 400 units, lags behind the growing domestic flight market demand.
"Before COVID-19, the number of pilots, the number of aircraft in Indonesia was 500 units, but after COVID-19, it was less than 400 units. Hence, supply and demand are not balanced," he pointed out.
Moreover, the number of foreign tourists reached 17 million, while Indonesian citizens who went abroad reached 7.5 million.
"Hence, we have to maintain all of this and the highest leverage figure is from the tourism sector. Now, this is what we are asking for -- for the quick win we are pushing," Airlangga affirmed.
The Indonesian Government has decided to lower the price of domestic flight tickets by 10 percent during the Christmas 2024 and New Year 2025 holidays at all airports in the country.
The tariff adjustment will be valid for 16 days during the year-end holiday, from December 19, 2024, to January 3, 2025.
The airfare reduction is expected to boost the domestic economy and tourism in the last quarter of 2024.
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Translator: Muhammad Harianto, Yashinta Difa
Editor: Rahmad Nasution
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