Following calls from the President of Indonesia to reduce airfares for travel in Indonesia, Indonesian flag carrier Garuda Indonesia announced last week it would reduce its ticket prices by 20%.

Garuda’s announcement to slash its prices will apply to all its routes and subsidiaries including Citilink, Sriwijaja Air and NAM Air.

In a statement announcing the fare reductions, Garuda CEO Ari Askhara said: "This is in line with the aspirations of Indonesians, a number of national industry associations, and the (wishes of) the president of Indonesia, who wants a reduction in flight prices to support economic growth, especially in the tourism sector.”

The reduction of fares follows a request by Indonesian President Joko “Jokowi” Widodo after complaints from tourism/travel organizations such as the Indonesian Hotel and Restaurant Association (PHRI) were made that the high prices were attributed to low hotel occupancy rates. While calls for the reduction of ticket prices were made, the government nor an official made any request as to the amount ticket prices should be cut.

In addition to calling for airfares to be lowered, Widodo also called for the lowering of aviation fuel prices.

A few days after the announcement, Indonesia’s transport minister Budi Karya Sumadi was quoted on Friday in The Jakarta Post stating the fares were still high saying “I checked the prices this morning; they are still too high.” He would go on saying the government will continue to observe ticket prices and he expected other airlines would follow suit and lower their fares. “We will monitor (the situation). If Garuda’s price is 100, Batik may charge 95 or 90 and Sriwijaya’s can be even lower, Meanwhile, Citilink will also make some corrections.”

Considered one of the aviation industry’s fastest growing markets, air travel has been a crucial mode of transport for Indonesia – a country made up of thousands of islands extending more than 5000 kilometers (3000 miles) from west to east. According to data from the World Bank, Indonesia’s aviation industry saw over 110 million passengers carried in 2017, more than triple the amount of passengers carried in 2010. The International Air Transport Association (IATA) has predicted the country will become the 4th largest air travel market by 2036.

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