POLICY ANALYSIS AND LEGAL EVALUATION OF HIGH DOMESTIC AIRFARE PRICES IN INDONESIA

Abstrak

Domestic airfare prices in Indonesia remain high compared to other ASEAN countries, prompting concerns over competitiveness. This study evaluates the regulatory framework influencing ticket prices, focusing on aviation fuel pricing and upper fare limits. Using the Guidelines for the Evaluation of Legislation, six dimensions were assessed: Pancasila alignment, regulatory form, disharmony, legal drafting clarity, conformity with legal principles, and implementation effectiveness. Findings indicate that the aviation fuel pricing formula (Ministerial Decree No. 17.K/10/MEM/2019) and limited competition in fuel distribution reduce market efficiency and fail to promote social justice. The study recommends reforming aviation energy policy, liberalising fuel distribution access, and reassessing airfare caps through participatory processes to create a fairer, more competitive framework.