The government is drafting a regulation to provide incentives for Indonesian low-cost carriers (LCCs) to boost tourism.
Transportation Minister Budi Karya Sumadi said in Jakarta on Tuesday that the government had discussed the incentives with the Indonesia National Air Carriers Association (INACA).
“We have discussed with INACA about what we will do for LCCs. The [low-cost] carriers are important in boosting tourism” Budi said on the sidelines of the ongoing Indonesian Development Forum (IDF), as quoted by tribunnews.com.
The incentives include issuing permits to expand the operations of low-cost carriers. “Expanding their networks and operations to more regions across the country will help them be more flexible and fly anywhere in this country, and increase the intake of tourists in strategic areas such as Bali, Lombok or Sumba” he added.
The government was also negotiating with state-owned energy company Pertamina to decrease the price of aviation turbine fuel (avtur) to help reduce the operational costs of LCCs, Budi said.
“We will speak with Pertamina to discuss avtur, which costs 20 percent more in Indonesia [than in other countries],” he added.
The minister also said the government was currently discussing the floor and ceiling prices for airplane tickets to create healthy competition among Indonesian low-cost carriers.