The transport minister has dismissed news his office will set a floor for low-cost airlines' fares.
This may no longer be the case after the flight 8501 tragedy.
"I've never asked budget carriers to raise ticket prices so that they are higher than public bus fares. I just said I'd like them to refrain from dumping prices and damaging the transport industry," ACM Prajin Juntong said on Tuesday.
Civil aviation regulations limit only air fares but not minimum prices, he said. "Therefore I have no power to order fare hikes or control prices. I only want airfares to reflect real costs."
The former air force chief was quoted by media as saying last week he was seeking cooperation from budget airlines to refrain from setting fares that are too low, because they might affect other types of public transport.
His comment came after Indonesia set a price floor for low-cost carriers operating in its domestic market. The Ministry of Transport declared that budget airfares must not be lower than 40% of what the full-service flag carrier Garuda Indonesia charges on a comparable route.
Jakarta took action after the crash of Indonesia AirAsia's flight 8501 on Dec 28 last year in which all 162 passengers and crew died. Officials claimed minimum fare regulation would ensure airlines have enough funds to invest in safety measures.
ACM Prajin's comment was construed by media as a signal he would set the minimum airfares for low-cost carriers.