President Director Of Garuda Indonesia Reveals The Reason Why Ticket Prices For Domestic Routes Are More Expensive Than Overseas

JAKARTA - President Director (Managing Director) of PT Garuda Indonesia Tbk (GIAA) Irfan Setiaputra revealed that the reason for the price of airplane tickets for domestic travel tends to be more expensive than traveling abroad.

First, he explained that domestic aviation fuel avtur will be taxed, while travel abroad is not taxed.

"We have never been out of government price signs. However, taxes are affected (PJP2U). The Avtur we bought is also taxable, tickets that we sell domestically are taxable," said Irfan during a doorstep session in the Soekarno Hatta International Airport area, Tangerang, Banten, quoted from Antara, Tuesday 12 November.

In addition, he mentioned the reason for the high number of domestic flight tickets, namely the Aircraft Passenger Service Rate (PJP2U) which experienced an increase of 35 percent in 2023.

"Well, after the TBA (High Limit Tariff), there is a tax. In Abis there is a PJP2U, which in 2023 will increase by 35 percent secretly. Don't you know? Suddenly, I increase the ticket price, so I have to go up," said Irfan.

Irfan said that plane ticket prices are likely to increase in 2025 next year, along with the implementation of Value Added Tax (VAT) of 12 percent.

"Yes, it goes up, just wait, TBA adds tax added Angkasa Pura," said Irfan.

He said there would be no problem if sales of avtur fuel were made to compete between other companies and PT Pertamina (Persero).

However, he said that the avtur fuel selling company outside PT Pertamina (Persero) must also be available throughout the region, to the eastern part of Indonesia.

"He said he wanted to open competition, not just Pertamina, that's not a problem either. Pertamina also doesn't feel like it's a problem. But, don't just go to Cengkareng, Pertamina is at Ternate, he's in Palopo. If you want to open the sale of avtur here at a low price, you can also open it at Palopo, to be fair. If it's only Jakarta and Bali, it's not fair," said Irfan.