Holiday Ayo - The high price of airplane tickets in Indonesia has received special attention from the Business Competition Supervisory Commission (KPPU).

Responding to this, Minister of Transportation (Menhub) Budi Karya Surmadi revealed four main factors that contributed to the high price of domestic plane tickets.

In the Press Conference on the Performance of the Transportation Sector in the 10 Years of President Joko Widodo's Administration which was held in Jakarta, Tuesday (1/10), Budi Karya explained that the cause of expensive plane tickets does not only come from one source.

"In fact, I have repeatedly said that ticket prices are not just our fault, there are four factors which, if resolved, could reduce prices," he said, quoted by Antara.

The first factor highlighted by the Minister of Transportation was the price of aviation fuel or aviation fuel.

According to him, if the price of aviation fuel in Indonesia could be on par with other countries, this would have the potential to reduce airline ticket prices.

"I have held a meeting with the Coordinating Minister for Maritime Affairs and Investment, Mr. Luhut Binsar Pandjaitan, regarding improving the price of aviation fuel," he added.

The Minister of Transportation also highlighted that in other countries there are multiple providers for aviation fuel, while in Indonesia they tend to be monopolistic.

The second factor is the import tax on aircraft spare parts. Budi Karya compared the situation in Indonesia with neighboring countries.

"Our spare parts are taxed, while in Singapore and Malaysia they are not. Imagine the impact on the 400 aircraft we have."

The Minister of Transportation stated that this issue was in the process of being resolved.

The third point of concern is the imposition of Value Added Tax (VAT) of 10% for passengers and aviation fuel.

The Minister of Transportation believes that this is no longer relevant considering that air transportation has now become society's primary need.

"When I was little, seeing a plane was considered an extraordinary thing. Now, we go everywhere using a Boeing 737. This has become a primary need, so it's irrelevant if VAT is charged," he explained.

The fourth factor emphasized by the Minister of Transportation was the importance of synergy and collaboration between stakeholders.

"We must collaborate with each other and make contributions. Otherwise, this problem will not be resolved," he stressed.