JAKARTA, NNC - Coordinating Minister for Maritime Affairs Luhut Binsar Pandjaitan said the decision to reduce flight ticket prices was done in the public interest.
"We are talking about public interests, it should not be arbitrarily," Luhut said at Coffee Morning with reporters in Jakarta on Monday (01/14/2019).
Mr. Luhut said as a regulator the government has the authority to regulate flight fares with the upper and lower limit tariff rules.
Thus, airlines cannot freely determine the price of airplane tickets. "If not controlled and regulated, then we all will become disorganized," he said.
However, the former Coordinating Minister for Politics, Law and Security Affairs ensured that, despite making rules regarding tariff limits, the government would not make the airlines lose money.
He said the rules were implemented in the interest of not only consumers but also for the company to remain operational.
"The government must make the company survive, but the company must also be efficient," Luhut said as quoted by Antara.