Aviation expert Alvin Lie questioned the consistency of the efforts by the Indonesian Minister of Tourism and Creative Economy, Sandiaga Uno, and the Indonesian Coordinating Minister for Maritime Affairs and Investment, Luhut Binsar Pandjaitan, in controlling national flight ticket prices.

Speaking to the press on Sunday, 28th of July, Lie explained that his scepticism over the government’s plans was due to the inconsistency with the discourse mentioned several months ago regarding the tourism endowment fund, which is planned to be charged to ticket prices in the foreseeable future.

“About three months ago, Mr. Sandiaga and Mr. Luhut launched a discourse that the tourism endowment fund would also be added and charged to the [flight] ticket price,” Lie divulged.

In April 2024, news outlets reported that the Indonesian government was reviewing a plan to collect tourism endowment funds to be charged to airline ticket prices. The Indonesian government plans to use the collected funds for national branding promotion purposes in supporting the sustainability of national and international-scale activities in the future.

That is why I’m questioning the sincerity of Mr. Luhut and Mr. Sandiaga. What is their intention? Why, three months ago, did they want to burden tourism funds on [flight] tickets, but now they want to reduce [the flight ticket price] instead?” Lie continued.

Back on Monday, 8th of July, Uno told the press that the tourism endowment fund, billed as the Indonesia Quality Tourism Fund (IQTF), remains under development and will eventually be managed by the Environmental Fund Management Agency (Badan Pengelola Dana Lingkungan Hidup or BPDLH).

President [Jokowi]’s directive is that the Indonesia Quality Tourism Fund will be formed and, in August, it will be completed in terms of regulations,” Uno asserted.

Having said that, Uno also recently told the press on Sunday, 28th of July, that the government is keen to resolve the issue of the current influx of flight ticket prices. A dedicated task force to resolve this issue consists of the Coordinating Ministry for Economic Affairs, the Coordinating Ministry for Maritime Affairs and Investment, and other related ministries and government institutions. Uno also targeted a 10 percent reduction in domestic airfare prices in October 2024.

“Thus, all of that will be reviewed, and we will ensure that our aviation industry is efficient — just like the aviation industry abroad,” Uno remarked.

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