Airlines Expected to Cut Upper Tariff Limit by 15 Percent

AT an afternoon tea event with journalists in Jakarta recently, Coordinating Minister for Maritime Affairs Luhut Binsar Pandjaitan said airline companies are expected to cut their upper tariff limit by 15 percent. All parties, including airline companies, have agreed to the plan, he said.

"It will decline by 15 percent. Garuda has said ok. In fact, Rini (state enterprises minister) has also said it. The decline in the upper tariff limit should not disrupt the performance of airline companies,” he said, adding that it will be evaluated.

Luhut Binsar also mentioned that referring to public complaints about the high prices of air tickets, he asked them to remain calm and await a new decision on the upper tariff limit.

He said the government has made every effort to reduce the prices of air tickets by opening opportunities for the private sector to engage in the aviation turbine fuel (avtur) business, among other measures.

As such, state oil and gas firm Pertamina will compete with the private sector to provide avtur fuel and thereafter its price will be competitive.

"We are different from Singapore where (the avtur price) is almost 25 percent. We do not want the difference to be too much. Singapore itself imports it," he added. [antaranews/photo special]