The Indonesian government has formally decided to reduce domestic airfares for selected destinations during the Christmas and New Year Holidays 204/2025.
The discounted air fares will be unavailable for unsold seats for 16 days from 19 December 2024 until 03 January 2025. As reported by TRIBUN-BALI.COM, ticket prices for the selected destinations will be reduced by up to 10% with an average discount of Rp. 157,000.
The discount is in keeping with a decree issued by the Minister of Transportation (Number 150 of 2024) and instructions given by President Prabowo Subianto.
Meanwhile, national aviation authorities estimate that 110.67 million passengers will travel over the 2024/2025 year-end holiday period.
The Coordinating Minister for Infrastructure and Regional Development, Agus Harimurti Yudhoyono (Menko AHY), conducted a meeting on 03 December 2024 addressing the subject of domestic air ticket reduction for the coming holiday period. Several related Ministers attended that meeting, including the Minister of Transportation, Dudy Purwagandhi; the Minister for State-owned Enterprises (BUMN), Erick Thohir; and the Minister of Tourism, Widiyanti Putri Wardhana. Top officials from Pertamina, Garuda Indonesian, Angkasa Pura Indonesia, Airnav Indonesia, Citilink Indonesia, Pelita Air Service, and the Lion Air Group were also attending.
Menko AHY outlines three steps now being undertaken to reduce the cost of domestic airfares:
- Reducing by as much as 50% airport fees paid by consumers (airport service charge) and airport fees charged to airline operators.
- Reducing the price of aviation fuel up to 5.3% at various airports to match the fuel cost at Cengkareng’s Bandara Soekarno-Hatta Airport.
- Reduce fuel surcharges for jet and propellor aircraft fuel by 8% and 2%, respectively.
The planned reduction in domestic air ticket prices requires the active participation of all Indonesian airlines, PT. Angkasa Pura Indonesia, PT Pertamina, and Airnav to reduce fuel surcharges, Passenger Service Charges (PJP2U), and the cost of aviation fuel.
Indonesian airlines are now quickly reducing the ticket price on their unsold seats over 16 days from 19 December 2024 until 03 January 2025.
ASITA Bali Comments
The chairman of the Bali branch of the Indonesian Association of Travel Agents (ASITA-Bali), I Putu Winastra, welcomes the reduction in domestic airfares, saying he hopes lower airfares would remain in place after the year-end holiday period.
“We hope these ticket price reductions can be available not only at the end of the year but onward into 2025 because ticket prices are a key component of a travel package. If the price is too expensive, people will be reluctant to travel,” said Winastra on Wednesday, 04 December 2024.
He also pointed out that domestic tourism destinations sometimes miss out on the competitive pricing of international travel from Indonesia to regional destinations. “For example, we can go to Malaysia cheaper than flying to Sumatra; this is ironic,” he said.
The Head of the Bali Provincial Tourism Office (Dispar), Tjok Bagus Pemayun, described ticket price reduction as the news everyone has been waiting for.
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