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MINISTRY CONCERNS ON AIRLINE TICKET FUEL SURCHARGE POLICY

THE INDONESIAN Government is still reviewing the policy for imposing additional fees or fuel surcharges for airline tickets which has been in effect since April 2022 and ends in July 2022.

Minister of Transportation, Budi Karya Sumadi confirmed that the policy has been in effect for 3 months ending this July to be re-evaluated. However, until the end of this month there is no certainty whether the policy will be extended.

“So, we see that if the fuel goes down, we will eliminate it, but if the costs are still high, that’s still [the policy]. Not yet [no confirmation]. We’ll see,” he said at the Ministry’s office, Monday (6/24).

As is known, the government allows airlines to adjust the cost (fuel surcharge) for domestic passenger air transportation at a rate of 10% above the Upper Limit Tariff (TBA) for jet aircraft and 20 percent above TBA for propeller aircraft.

Spokesperson for the Ministry of Transportation, Adita Irawati, said the provision to increase the tariff was implemented to maintain the continuity of airline operations and to ensure connectivity between regions in Indonesia was not disrupted. Following the increase in world oil and avtur prices.

This provision is stated in the Decree of the Minister of Transportation No. 68/2022 concerning Additional Charges (Fuel Surcharge) for Economy Class Domestic Scheduled Commercial Air Transport Passenger Fares which came into effect as of April 18 2022.

The amount of additional costs or fuel surcharge is distinguished based on jet and propeller types. For jet type aircraft, a maximum of 10% of the upper limit tariff can be applied according to the service group of each Air Transportation Business Entity. Meanwhile, for propeller type aircraft, a maximum of 20% of the upper limit tariff can be applied according to the service group of each Air Transportation Business Entity.

A number of national airlines said that they had made adjustments to air ticket fares for the 2022 Eid period in line with the green light from the Ministry of Transportation in implementing tuslah or additional ticket costs in the form of a fuel surcharge. [sources/photo special]