Indonesian gov’t allows airlines to hike up ticket prices to compensate for passenger limit

Garuda Indonesia aircrafts parked on the runway of Soekarno-Hatta International Airport in January 2020. Photo: Nadia Vetta Hamid for Coconuts Media
Garuda Indonesia aircrafts parked on the runway of Soekarno-Hatta International Airport in January 2020. Photo: Nadia Vetta Hamid for Coconuts Media

An official from the Coordinating Ministry for Maritime Affairs and Investment says airlines operating in Indonesia are permitted to raise their ticket prices and make use of the upper airfare limit, citing the passenger limit currently imposed amid the COVID-19 pandemic as a valid reason for doing so. 

Ridwan Djamaluddin, the deputy for the ministry’s Coordinating Department of Infrastructure and Transportation, said during a virtual discussion yesterday that such a move may help airlines cover their operational costs, considering that the government is still limiting the number of airline passengers to around 70 percent from full capacity.

“Therefore, go ahead if [the airlines] wish to hike up prices,” Ridwan said.

He added that the price surge should still follow existing regulations on airfare, which determines set price ceilings and floors. 

“What isn’t permitted is to use this condition to seek for huge profits, [the policy should keep] the entity healthy.” 

According to Ridwan, no airline in the country has yet to increase their ticket prices nearing the upper airfare limit.

The upper airfare limit varies by destination. For example, the maximum price for an economy flight from Jakarta to Surabaya is IDR2.334 million (US$164) based on current airfare regulations.

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