double-skinned crabsVietnamese crab exportergood crabexellent crab

Garuda CEO Says Fare Hikes Driven by External Factors

Anisa Fauziah
June 13, 2024 | 11:19 pm
SHARE
B-Universe Media Holdings Executive Chairman Enggartiasto Lukita, left, shakes hands with Garuda Indonesia CEO Irfan Setiaputra at eL Building in South Jakarta, Thursday, June 13, 2024. (Joanito De Saojoao)
B-Universe Media Holdings Executive Chairman Enggartiasto Lukita, left, shakes hands with Garuda Indonesia CEO Irfan Setiaputra at eL Building in South Jakarta, Thursday, June 13, 2024. (Joanito De Saojoao)

Jakarta. Irfan Setiaputra, the CEO of national carrier Garuda Indonesia, said on Thursday that the continued hikes in airfares are driven by factors beyond the company’s control.

He noted that the government-imposed air tariff cap has not been raised for years.

"Although the airfares paid by passengers have increased, this is due to factors outside the airline’s policies, such as airport taxes. Aviation fuel costs are also significantly higher now compared to 2019, and exchange rate differences further exacerbate the situation,” Irfan said after his meeting with B-Universe Media Holdings Executive Chairman Enggartiasto Lukita at eL Building in South Jakarta.

These factors, he added, have become "pressing issues" that significantly reduce the company’s profit margin.

ADVERTISEMENT

“We continuously raise the issue of the ceiling tariff and will keep doing so because it is crucial for us. While we understand the government’s considerations in setting the tariff cap, we need a higher ceiling tariff to ensure our survival," Irfan said.

Enggartiasto praised Garuda for its quality service and on-time performance, saying the airline deserves its status as the standard-bearer in the Indonesian civil aviation industry.

“As a media organization, we highly appreciate Garuda for its quality service and remarkable on-time performance,” Enggartiasto said.

“Although there has not yet been an official confirmation from the government, I can proudly say that Garuda deserves its status as the national flag carrier,” the former trade minister added.

Enggartiasto also noted that Garuda still has room for improvement, particularly in supporting the government’s connectivity push by serving flights to remote areas under government assignments. However, he emphasized that the government must provide subsidies for Garuda to fulfill these public service obligations.

“In my opinion, the tariff cap should be raised to allow some flexibility so that Garuda can maintain its status as a premium airline without compromising service quality,” Enggartiasto said.

Tags: Keywords:
Google Add Investor.id as a preferred source on Google +
SHARE

Related Articles


Business Oct 1, 2026 | 9:31 am

Garuda’s $1.4 Billion Rescue Fails to Keep Equity in the Black

Garuda Indonesia’s equity turns negative again as surging fuel costs offset stronger revenue and a $1.4 billion capital injection.
Business Sep 22, 2026 | 3:11 am

Rosan Roeslani Confirmed as Keynote Speaker at Investor Daily Summit 2026

Investment Minister Rosan Roeslani will deliver a keynote at Investor Daily Summit 2026, focusing on Indonesia’s economic outlook.
Lifestyle Aug 14, 2026 | 3:48 pm

Garuda Indonesia Offers Free Domestic Flights for International Passengers: How to Qualify

Garuda Indonesia is offering foreign tourists one free domestic flight when they buy an eligible international ticket to Indonesia.
Business Aug 13, 2026 | 1:43 pm

Garuda Indonesia Suspends Commercial Director Reza Aulia Hakim

Garuda Indonesia temporarily suspended Commercial Director Reza Aulia Hakim effective Aug. 14 without disclosing the reason.
Business Aug 11, 2026 | 11:47 am

Garuda Boosts Fleet While Citilink Shrinks Ahead of Pelita Air Integration

Garuda adds aircraft despite weaker traffic, while Citilink cuts its fleet amid a potential Pelita Air integration.
News Aug 7, 2026 | 10:51 pm

Global Economy Shifting Deeper Into Protectionism, Former Trade Minister Warns

Rising global protectionism could erode Indonesia's export competitiveness unless the country responds early, Enggartiasto says.
Business Aug 6, 2026 | 10:09 pm

Central Sulawesi Launches First Direct Flights to Guangzhou

Central Sulawesi launched its first direct international flights to Guangzhou, boosting trade, tourism and investment links with China.
Business Jul 24, 2026 | 3:40 pm

Pelita Air to Join Garuda-Led Holding Company, Not Merge

Danantara says Pelita Air will join a Garuda-led airline holding company rather than merge with Garuda Indonesia.
News Jul 10, 2026 | 3:41 pm

Enggartiasto Pays Tribute to Rachmat Gobel, Recalls Decades of Friendship

Former trade minister Enggartiasto Lukita says his decades-long friendship with Rachmat Gobel spanned business, politics, and government.
News Jun 26, 2026 | 7:30 pm

Investor Daily Marks Silver Jubilee While Defying Global Decline of Print Media

Investor Daily marked its 25th anniversary after successfully evolving from a print newspaper into a multimedia business news platform.

The Latest


Special Updates 47 minutes ago

Chandra Asri Group Receives Trade Finance Excellence Award, Reinforcing Its Role in Indonesia’s Industrial Development

Chandra Asri Group receives the Trade Finance Excellence Award at CIMB Niaga Business Summit 2026.
Special Updates 1 hours ago

AEON MALL Deltamas Brings 11 Sports and Creative Competitions to AEONLYMPIC 2026

AEON MALL Deltamas hosts AEONLYMPIC 2026, featuring 11 sports and creative competitions, with more than 3,100 participants.
Business 2 hours ago

Indonesian Stocks Extend Losses for Third Day, Fall 3.64% to 4,996

Indonesian stocks fell 3.64% on Monday, extending losses for a third straight session amid MSCI concerns and tighter trading limits.
News 3 hours ago

Prabowo Calls Meeting on Forest Fires as Haze Reaches Jakarta, Singapore

Prabowo summons senior officials to discuss forest fires as smoke reaches Jakarta and Malaysia pushes for regional action.
Lifestyle 5 hours ago

Jakarta Outranks Amsterdam in Global Public Transport Survey

Jakarta climbs two places to 15th in Time Out's 2026 public transport survey, with its governor citing better network integration.
COPYRIGHT © 2026 JAKARTA GLOBE. ALL RIGHTS RESERVED