In a significant move to enhance domestic tourism, Indonesian Minister of Tourism and Creative Economies, Sandiaga Uno, has announced plans to reduce domestic airfare costs, promising to transform travel opportunities for both locals and international visitors. This initiative aims to make it easier for domestic tourists to explore Indonesia’s diverse archipelago, with a particular emphasis on encouraging adventurous holidaymakers in Bali to discover more of what the nation has to offer.

Minister Uno revealed that a new policy is currently being drafted by Minister for Investment Luhur Bisan Pandjaitan. He stated, “Minister Luhut is addressing the cost of airline tickets intending to announce breakthrough measures before the change of the Presidential Cabinet and the swearing in of the next government.” These changes are anticipated to take effect by early October 2024.

The government is exploring several strategies to achieve an overall 10% reduction in domestic airfare costs, including cutting value-added tax (VAT), reducing import taxes on aviation equipment, and lowering the cost of aviation fuel. Minister Pandjaitan, who emphasized the urgency of reducing airfares back in July, pointed out that Indonesia’s domestic airfares are currently among the highest in Southeast Asia. He remarked, “Compared to ASEAN countries and high-population countries, Indonesia’s flight ticket price will be the second most expensive after Brazil.”

This reduction in airfares is expected to benefit international tourists as well, particularly those traveling to Bali. The anticipated cuts will ease the burden of transit costs for long-haul travelers passing through Jakarta, making it more affordable to explore regions beyond Bali. Destinations like Yogyakarta, highlighted by the travel booking platform Agoda as one of Indonesia's most culturally rich and affordable locations, will become more accessible with multiple daily flights connecting Bali to the area.

Bali's unique position as a gateway to Indonesia’s numerous provinces offers a plethora of travel experiences. With direct flights available to places like Sumba and Labuan Bajo, as well as short boat rides to Lombok and the Gili Islands, the options for exploration are expanding. For instance, flights from Bali to Jakarta take approximately 1 hour and 55 minutes, while journeys from Denpasar to Medan in Sumatra last around 6 hours.

I Gusti Ngurah Rai International Airport, Bali’s sole commercial airport, is gearing up for its busiest year since reopening post-lockdown. Major airlines are responding to the rising demand; Etihad has announced increased flight services, while Korean Air will launch a twice-daily service between Seoul Incheon and Denpasar starting October 20, 2024.

As Minister Uno and his team work towards reducing airfare costs, the outlook for Indonesian tourism is increasingly optimistic. With more affordable travel options, holidaymakers will have the chance to experience the rich tapestry of culture and adventure that Indonesia has to offer, making this the perfect time to explore beyond Bali.