It turns out that this is the culprit for Indonesia’s most expensive air tickets in the world: Okezone Economy

Jakarta – Apparently that’s the reason for the price Airline Tickets In Indonesia, it is even more expensive. Coordinating Minister for Maritime Affairs and Fisheries Luhut Binsar Pandjaitan said airfares in Indonesia are the second most expensive in the world, after Brazil.

Many observers agree that domestic airfare is more expensive than overseas or international airfare.

Aviation observers Ruth Hana Simatupang and Alvin Lie said that if we dissect the airline business model, we will find that ticket prices are made up of two parts.

First, there are the costs borne by airlines starting from the cost of leasing aircraft, maintenance or servicing, insurance, recruiting crew, pilot training, and purchasing spare parts and fuel.

Secondly, there are some taxes and fees imposed by the government, such as the 11% Value Added Tax (VAT), the mandatory Jasa Raharja insurance contribution, airport taxes or PJP2U, including a “deposit” fee in the price of jet fuel, such as a throughput charge or a levy on each allocation of jet fuel by the airport manager.

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