Saturday, 20 Safar 1441 / 19 October 2019

Saturday, 20 Safar 1441 / 19 October 2019

Hike in airfares is inevitable: Jusuf Kalla

Selasa 15 Jan 2019 08:04 WIB

Rep: Ahmad Fikri Noor/ Red: Reiny Dwinanda

Jusuf Kalla

Jusuf Kalla

Foto: AP/Olivier Matthys
An increase in airline ticket prices is the result of rupiah depreciation.

REPUBLIKA.CO.ID, JAKARTA -- Vice President Jusuf Kalla stated that the increase in airfares in Indonesia was inevitable. It was the result of the rupiah's depreciation against the US dollar that has affected the cost for aircraft maintenance and avtur, according to him.

Kalla explained that the airlines paid in dollars, including for buying the airplane and avtur. On the other hand, the ticket price sold in rupiah.

"Hence, there must be a gradual adjustment," Kalla remarked at a seminar of the Association of State University Alumni Organizations (Himpuni) here on Monday.

The hike in airfares is deemed necessary to keep the airlines operating amidst the rupiah's depreciation against the US dollar, he noted.

"If the price was not increased, maybe we can enjoy (the low price) and so will many airlines today, but tomorrow, we do not know how many airlines will collapse," he added.

Consequently, only certain airlines will control the market in Indonesia. A monopoly will also cause an increase in airfares, he said.

"Be careful, we have to consider that too, the interests of both consumers and the company," Kalla pointed out.

The Indonesia National Carriers Association (INACA) has agreed to lower ticket prices in response to public complaints over the higher airfares. The rupiah strengthened three points, from Rp14,045 to Rp14,048 against the US dollar on Monday morning's trade.

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