Jakarta. Chief Infrastructure and Regional Development Minister Agus Harimurti Yudhoyono (AHY) announced the formation of an Airfare Reduction Task Force to address high flight ticket prices, with Transportation Minister Dudy Purwagandhi hoping for results before the Christmas season.

“The goal of this task force is to manage airfare reductions sustainably. We prioritize convenience, comfort, and economic value for the public,” AHY said at a press conference in Jakarta on Wednesday.

He emphasized the impact of transportation costs on regional growth. “To advance regional economies, transport costs—especially for moving people and goods—must become more affordable,” he said.

AHY also noted that high transportation expenses hinder mobility and productivity. “If costs remain high, it will impact mobility and productivity. We’ll continue to monitor this,” he added.

Transportation Minister Dudy Purwagandhi, also in attendance, said his ministry awaits updates from the task force, coordinated by the Economic Affairs Ministry. “We hope to see tangible outcomes before the Christmas and New Year holidays,” he said.

Supporting the initiative, Dwi Ardianta Kurniawan from the Center for Transportation and Logistics Studies at Gadjah Mada University advocated for a multiprovider system for aviation fuel to prevent monopolies, a proposal endorsed by the Business Competition Supervisory Commission (KPPU).

High airfares in Indonesia are influenced by fuel prices, import taxes on parts, and value-added tax (VAT). In response, the government announced in July various measures, including duty exemptions, tax incentives, and a revised tariff structure for aviation imports.

Former Chief Investment Minister Luhut Binsar Pandjaitan pointed to rising demand for flights, now at 90 percent of pre-pandemic levels, as another driver of increased fares. The International Air Transport Association (IATA) projects global passenger numbers to reach 4.7 billion in 2024, surpassing 2019 levels by over 200 million.

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