The Minister of Transportation Called BUMN and KPPU Authorized to Set Airline Ticket Prices


Transportation Minister Budi Karya Sumadi showed his ministry could now not interfere in regulating the quantity of plane ticket costs . Because, the charge of plane tickets must be launched into the market mechanism.

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"In the law, we're in simple terms mandated to set higher restrict and decrease restrict tariffs," Budi Karya stated in a operating assembly with the Commission V of the House of Representatives within the parliamentary complex, Senayan, Jakarta, Wednesday, June 12, 2019.

This Budi Karya statement responded to just a few criticisms by means of means of members of Parliament Commission V who complained concerning the conditions of plane ticket prices. Komidi V assessed that ticket costs circulating within the market handed people's buying power.

One of the criticisms was uttered by means of means of Democratic Party politician Willem Wandik. He said, the excessive plane tariffs had hampered the mobilization of the Papuan people. He then proposed that the govt. modify the coverage of giving unique costs for air journey from and to Papua.

According to Budi Karya, an entity that has authority over the case of airline ticket costs is the Ministry of State-Owned Enterprises or BUMN and the Business Competition Supervisory Commission, aka KPPU. BUMNs are seen to have a portion to 'talk' about ticket costs as the state has a majority stake in Garuda Indonesia airlines.

"Garuda is the most popular price. If airways set prices, others will join, "he said.

Meanwhile, KPPU has a component to investigating and following up on airline firms if the commission sniffs out fraud from duopoly practices. Duopoly is suspected to happen simply due to the fact lately airways in Indonesia are in simple terms controlled by means of means of NULL big companies, particularly Garuda Indonesia Group and Lion Air Group.

However, Budi Karya ensures that lately there aren't any overseas airways that violate the above and beneath tariffs. Only, the charge bought isn't denied touching the flight ticket's higher restrict .

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