Indonesia's Minister of Tourism and Creative Economy, Sandiaga Uno, announced plans to reduce the cost of domestic air travel in the country. This intention was first mentioned back in July of this year, but it has now taken on more concrete form. The new policy is currently being developed by the Minister of Investment, Luhut Binsar Pandjaitan.
Uno explained: "The minister is currently addressing the issue of airfare costs and intends to announce breakthrough measures before the current presidential cabinet transitions and the next government is sworn in." These measures to reduce airfares could take effect as early as October 2024.
He added that several solutions are being worked on to help the government lower the prices of domestic flights, including reducing VAT, import taxes on aviation equipment, and the cost of aviation fuel. The goal is to reduce the cost of domestic flights by 10%.
The government has been concerned about the high prices because domestic airfares in Indonesia are more expensive than in many neighboring countries. In July, Pandjaitan wrote on his social media: "We are preparing several steps to increase flight efficiency and reduce ticket prices, such as evaluating the operational costs of aircraft. We are also developing a strategy to reduce the Cost Per Block Hour (CBH) depending on the type of aircraft and flight services. Compared to ASEAN countries and other countries with similar populations to Indonesia, airfare prices in Indonesia are currently the second most expensive after Brazil."
The anticipated reduction in airfare prices will not only help lower transit costs through Jakarta for long-distance travelers but will also make it more affordable to explore regions beyond Bali. This makes sense, as the island's infrastructure is struggling to cope with the influx of tourists, while other beautiful parts of the country are receiving far less attention, partly due to the high cost of tickets. On the other hand, a 10% reduction, with average flight costs of $100-150, is unlikely to significantly impact solo travelers' plans. However, for larger families, the savings will be more noticeable.
You can add one right now!