Minister of Transportation (Menhub) Budi Karya Sumadi said he would meet with Minister of Finance Sri Mulyani Indrawati to fight for the abolition of spare parts taxes imported from abroad.
Furthermore, Budi explained that by removing the spare parts tax, the airline's operational costs would be reduced.
"This is what we ask (tax smoothing of spare parts). I will sowan to the Minister of Finance to convey that the taxes from spare parts have a huge impact," he said at the CEO Talks INACA event at the Park Hyatt Hotel, Jakarta, Thursday, November 2.
Budi also said that the abolition of the tax was also carried out to support Maintenance, Repair, and overhaul (MRO) or aircraft workshops in the country to compete.
The reason, continued Budi, the challenges faced by the aviation industry today are the limited number of aircraft, the price of avtur which is still expensive to limited spare parts.
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"We also know that USD, avtur, parts, are obstacles," he said.
Furthermore, Budi said that because of the scarcity of spare parts, many aircraft belonging to domestic airlines entered workshops abroad.
"It's a pity that GMF (Garuda Maintenance Facility) is all kinds of things and unfortunately we can do that opportunity. And that is our competitiveness for MRO is reduced. We imagine what MRO is not only for Indonesia. But if you enter here the taxable spare parts," he said.
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