Officially confirmed, airplane ticket prices reduced by 10%

This article has been translated by PwC Indonesia as part of our Indonesia Infrastructure News Service. PwC Indonesia has not checked the accuracy of, and accepts no responsibility for the content.

Investor Daily - Sah, harga tiket pesawat turun 10%

28 November 2024

By Ichsan Amin

Jakarta, ID – The government has announced a reduction in airline ticket prices by up to 10% during the Christmas 2024 and New Year 2025 holiday period. This reduction takes into account several tariff components in the airline ticket pricing.

Coordinating Minister for Infrastructure and Regional Development, Agus Harimurti Yudhoyono (AHY), stated that the reduction in airline ticket prices considers the tariff components of the ticket prices. 

"In the past two weeks, our work has not always been publicised, but we have been making efforts, especially as we approach the peak moments of the Christmas and New Year period. From all elements covering airport fees, aviation fuel, and fuel surcharges, we can reduce the ticket prices by approximately 10% from the usual prices nationwide," said AHY at the Presidential Palace in Jakarta on Tuesday (26/11/2024).

He mentioned that the elements of these tariff components have involved all stakeholders, making the impact more accessible to the public. "So, the Transportation Minister along with other stakeholders, including state-owned airlines, recognise the importance of reducing ticket prices to help our people and stimulate the economy, including tourism," he concluded.

Previously, the Transportation Ministry issued a memorandum reducing Passenger Service Charge (PSC) by 50% for services under Airport Operator Units (UPBUs) managed by the Directorate General of Civil Aviation. PSC is one of the components in the airline ticket price.

This decision is based on the Decision of the Director General of Civil Aviation Number KP 250 DJPU 2024 regarding the Imposition of Non-Tax State Revenue (PNBP) Tariffs. The PSC discount is set for three days, valid from 19 December 2024 to 3 January 2025, with the ticket booking period starting 24 November 2024.

The PSC reduction of 50% is also planned to be applicable for commercial airports managed by PT Angkasa Pura Indonesia (InJourney Airports). Additionally, aside from reducing the PSC component, the government will also cut the fuel surcharge. As compensation, aviation fuel prices will also be lowered during the Christmas and New Year period.

Meanwhile, the Chairperson of the Indonesian Aviation Service Users Association (Apjapi), Alvin Lie, stated that the government's decision to lower airline ticket prices will put the burden on airport operators and airlines. "However, if it is a government decision, then all operators must comply," he told Investor Daily.

Alvin explained that the government’s decision to reduce airfare prices will not increase the income of airlines or airport operators. "Quite the opposite, they [airport operators and airlines] will incur losses instead of gaining profit during peak seasons like this," he emphasised.

Growth of 4%

The Transportation Ministry stated that during the Christmas 2024 and New Year 2025 holiday period, the number of airline passengers is predicted to grow by 4% compared to the same period the previous year.

To anticipate this, the Ministry through the Directorate General of Civil Aviation has prepared an air transportation operation plan for the Christmas and New Year period to ensure the safety, security, and comfort of air transportation service users.

One of the routine activities conducted by the Directorate during major holidays is to carry out ramp inspections for flight safety, which include inspecting the operational integrity of aircraft according to the applicable implementation guidelines, coordinated through the local the Airport Authority Office or the Airport Unit Office. Ramp inspections will be conducted from 17 December 2024 to 4 January 2025.

"Ramp inspections are conducted by inspectors from each technical directorate to ensure smooth operations and enhance compliance with safety and security aspects in controlling air transportation during the Christmas and New Year preparation period," said Acting Director General of Civil Aviation, Lukman F. Laisa.

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