Coordinating Minister for Infrastructure and Regional Development Agus Harimurti Yudhoyono delivered the statement during a press conference at Terminal 2F of Soekarno-Hatta International Airport, Tangerang, Banten, on Saturday.
"The target is to achieve a price reduction similar to the one during last year's Christmas, but what is more pleasing is even that there is an additional incentive with the government covering six percent of the VAT. This, in aggregate, will hopefully allow the government to reduce the airfare prices," he remarked.
Minister Yudhoyono explained that the decision to lower air and land transportation fares was made at President Prabowo Subianto's behest to alleviate the financial burden on travelers by reducing the ticket prices.
He noted that the overall reduction in airfare, particularly for domestic flights, will be about 13 to 14 percent.
The ticket price adjustments were achieved through collaboration between various institutions and ministries, including state-owned enterprises (BUMN), the Ministry of Transportation, the Ministry of Public Works and Housing (PUPR), and the Ministry of Finance.
“The domestic (airfare) as a whole boosted by 13 to 14 percent for approximately two weeks. Hopefully, the reduction in ticket prices will also benefit the people who have been preparing to return home to meet their families and celebrate Eid al-Fitr,” he remarked.
Meanwhile, AHY announced a 20 percent discount on toll fees across Indonesia to reduce travel costs for those using land transportation.
"There is a 20 percent discount on tolls for several toll road routes in Indonesia. This is also an effort to lessen the cost of land travel for the public,” he remarked.
The Indonesian government has also lowered aviation fuel prices at several airports so that the overall reduction in airfare can be implemented with a target of lowering ticket prices by at least 13 percent.
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Translator: Kuntum Khaira Riswan
Editor: Azis Kurmala
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