Airfare Soars? Ministry of Transportation Collaborates with FTMD ITB to Hold FGD
As an archipelago nation with over 17,000 islands, Indonesia heavily relies on air transportation to support the movement of goods and passengers. Amid nationwide development efforts, the public faces a new challenge with rising airfare prices, sparking widespread concern. To address this issue, the Transportation Policy Agency of the Ministry of Transportation (Kemenhub) partnered with the Faculty of Mechanical and Aerospace Engineering (FTMD) of ITB to organize a Focus Group Discussion (FGD) on air transportation tariffs on Tuesday, August 27, 2024.
The FGD was opened by Satrio Wicaksono, S.T., M.Eng., Ph.D., Head of the Center for Research and Innovation in Energy, Materials, Manufacturing, and Sustainable Transportation (RIEM2TB), representing the Dean of FTMD ITB, Prof. Dr. Ir. Tatacipta Dirgantara. In his opening remarks, Satrio emphasized that this collaboration not only benefits FTMD and Kemenhub but also has a significant impact on all of Indonesia. FTMD’s involvement highlights its strategic role as a key partner in the development of national transportation policies.
Dr. Umar Aris, S.H., M.M., M.H., Chief Policy Analyst at Kemenhub, also expressed appreciation for FTMD ITB’s contributions in conducting in-depth research on the issue of air transportation tariffs.
The FGD, led by Dr. Endang Puji Lestari, S.H., M.H., Head of the Traffic and Transportation Division at the Center for Traffic and Urban Transportation Policy, featured a conceptual study presented by Ony Arifianto, Ph.D., Head of the Air Transportation Tariff Research Team from FTMD ITB. Along with other researchers such as Prof. Dr. Ir. Hari Muhammad, Dr. Ir. Hisar M. Pasaribu, IPU, Ir. Risnandi Saepurachman, M.M., Dr.-Ing. Ir. Javesius Sembiring, and Dr. Eng. Maya Safira, supported by several expert assistants, they discussed factors affecting airfare prices, including fuel costs, aircraft leasing, and exchange rates.
In their study, FTMD ITB successfully identified various challenges faced by Indonesia’s air transportation sector, including regulations and the evaluation of airfares. They also conducted benchmarking with countries like those in Europe, the United States, Malaysia, Thailand, and Vietnam to develop data-driven solutions that support fairer and more sustainable tariff policies.
Mr. Anung Bayumurti, S.E., M.T., Airfare Analyst, highlighted the importance of proper tariff formulation and its impact on the sustainability of airline businesses. He explained that factors such as aviation fuel, operational costs, and exchange rates play a significant role in determining ticket prices. The discussion also touched on the need for tax reforms and sustainable pricing policies, with FTMD ITB playing a crucial role as a trusted analytical partner.
The discussion became more intensive with the participation of various stakeholders, including representatives from Angkasa Pura and other parties, both in person and virtually, contributing their insights and perspectives on managing air transportation tariffs.
This collaboration between Kemenhub and FTMD ITB underscores FTMD’s position as a center of research excellence with a significant influence on advancing Indonesia’s transportation sector. With its academic background and deep expertise, FTMD continues to demonstrate its commitment to supporting national development and creating innovative solutions for future air transportation challenges.