Posted by on May 16, 2018

Bank Indonesia and Bali Provincial Officials Call on Airlines to Fight Inflation by Not Increasing Air Fares During Lebaran Period


Historically in Indonesia, a major source of inflationary pressures during the holiday periods is the cost of transportation. Because of this, the Bali branch of Bank Indonesia and the Bali Provincial Team for the Control of Inflation (TPID) have decided to jointly focus on controlling transportation costs during the coming fasting and Lebaran period.

As reported by Bisnis Bali, Azka Subhan of Bank Indonesia – Bali told the press that he hoped that airlines will not unduly increase ticket prices over the holiday period. “We encourage the airlines to provide additional seats and not increase individual ticket prices in order to control inflation,” he said.

The Bank Indonesia official admitted that it is difficult to manage the price of air tickets when pricing is a matter left for the individual airlines to decide. At most, the TPID can only suggest that airlines add more seats to widen supply and refrain from increasing tickets prices too much.

“For this year, we hope that the minimal conditions remains the same as last year and that ticket prices do not increase because this would add to inflationary pressures,” said Subhan.

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