Minister Of Transportation Budi Karya Calls Passenger Service Charge And Airport Tax Still Free In 2021

JAKARTA - The Ministry of Transportation (Kemenhub) will extend the subsidy program for the three transportation sectors until 2021. The goal is to increase the purchasing power of people in remote areas.

Minister of Transportation (Menhub) Budi Karya Sumadi said that the subsidy program for air, land and sea transportation is part of the massive development of facilities to outermost, underdeveloped and border areas. This is because the purchasing power of local residents is still very minimal.

"The problem is that the purchasing power of our brothers and sisters in the 3T places is not too strong," he said, during the Kaleidoscope 2020: State Commitment to Build Infrastructure virtually, Tuesday, December 29.

Budi said, for subsidies in the land transport sector, his party is cooperating with a number of transportation businesses in this sector. Where, the Ministry of Transportation provides buy the service (BTS) or a system of purchasing services by the government to public transport operators.

Then, for subsidies in the air sector, the government provides a stimulus for the aviation industry through navigation calibration fees and the elimination of the passenger service charge (PSC) or airport tax in the airplane ticket component.

Budi said, in this sector the government has injected funds worth IDR 175 billion for the tariff for air passenger services (PJP2U). Meanwhile, for the calibration cost, it has budgeted more than Rp. 40 billion for AirNav and PT Angkasa Pura I and PT Angkasa Pura II.

"There is also a subsidy for air transportation, and don't forget that we also provide subsidies for land transportation. So we are working with land transportation entrepreneurs, we provide buy the service (BTS)," he explained.

As for sea transportation, the subsidies provided consist of two types, namely passenger sea transportation and logistical sea transportation.

Budi said that the implementation of sea toll freight transportation with assignment and private mechanisms for 21 routes with a budget of IDR 456.6 billion and livestock ship transportation services of IDR 77.61 billion.

Then, other sea transportation subsidies, namely the provision of private and Pelni pioneer sea transportation services of Rp1.18 trillion. In addition, the Ministry of Transportation has also built 20 units of rede vessels of IDR 30 billion.

Budi admits that he is sure that the subsidies disbursed by the government in the transportation sector can reduce the price disparity between Western and Eastern Indonesia.