Garuda Indonesia comes under state pressure to cut airfares, as Joko Widodo seeks re-election

Garuda Indonesia is facing continued pressure from its majority shareholder, the Indonesian govt, to lower ticket prices and stimulate tourism as the economy flags, a move analysts described as political meddling that will hurt investor confidence. After the transport minister’s appeal last month to Garuda and other domestic airlines, Indonesian president Joko Widodo’s most trusted minister Luhut Panjaitan this week chided the carrier and ordered it to lower ticket prices by next week. Panjaitan suggested expensive ticket prices would discourage air travellers in the domestic market and tarnish the govt’s image among Indonesians, who will vote in presidential and legislative elections April 17. <br/>