Indonesia’s airline industry has joined forces to protest a jet fuel supply monopoly which they claim costs about 20% more than in other countries.
Most aviation fuel supply comes from state owned Pertamina which has the contract to supply airports.
Carriers such as Garuda-owned Citilink and Indonesia AirAsia have received backing from transport minister Ignatius Jonan and have requested an urgent review of the situation by the government.
The Indonesian National Air Carriers Association (INACA) recently held talks with government ministers to press their case.
"Indonesian airlines have no other choices but to ‘squeeze’ Pertamina, which holds the monopoly on jet fuel distribution. That is not healthy," Indonesia Air Asia board commissioner Dharmadi said.
Citilink Indonesia commercial director Hans Nugroho said any reduction would ‘be helpful’ as jet fuel typically accounts for about 50% of operating costs.
"If the industry had a choice of price, that would mean ticket prices could also go down, and we could offer improved services," Nugroho said.
Pertamina said it subsidises fuel deliveries at smaller regional airports which is funded by higher fuel prices at the major hubs.
This was dismissed as not part of the role of a state-run fuel supplier by minister Jonan.
"Pertamina is not required to supply aviation fuel at small airports and if they no longer provide fuel at smaller, government-operated airports, the private sector can supply them," he said.
