It's Not About Profits, 50 Percent Airport Tax Discounts Are Believed To Boost Local Economy

JAKARTA - PT Angkasa Pura Indonesia or InJourney Airports provides a 50 percent airport tax discount to passengers and airlines. This discount is given in order to reduce domestic flight ticket prices during the 2024 Christmas and 2025 New Year (Nataru) holidays.

The airport tax includes a 50 percent Passenger Service (PSC) discount for passengers, and a 50 percent Aircraft Placement and Storage Service (PJP4U) rate for airlines.

Then, how much does the discount have an impact on the company's revenue?

Special Staff to the Minister of State-Owned Enterprises (BUMN) Arya Sinulingga said that the decline in prices for a certain period for the benefit of the community was a natural thing for the company.

Therefore, according to Arya, BUMN, in this case InJourney Airports does not see the tax discount as a loss.

"This is not lost or anything, yes, it is also natural that there is a certain period where we lower prices, it's only natural," he said at a press conference at the BUMN Ministry Office, Jakarta, Friday, December 6.

The reduction in PSC costs, continued Arya, is not always seen as profit and loss. However, he continued, how to have a much bigger economic impact than the reduced company's income.

Arya also said this step was in line with the direction of President Prabowo Subianto who wanted a big economic impact from the tourism sector.

With cheaper flight tickets, continued Arya, it will encourage an increase in the number of passengers and also stimulate the tourism sector.

"This means that the increase in passengers is getting higher, the wheels of the economy are spinning everywhere, which was previously a bit higher because the resulting holidays may be 3 days off, with this being able to increase to 5 days. The economic effects are even bigger. So don't look at the lost side," he said.

Meanwhile, President Director of PT Aviasi Wisata Indonesia (Persero) or InJourney Maya Watono explained that the provision of airport tax discounts was a contribution made by InJourney Airports to the public in reducing aircraft tickets.

"Surely we have a cost for this, but what we see is indeed an economic impact, a multiplier effect that can be generated from this," said Maya.

With the decrease in ticket prices supported by this airport tax cuts, said Maya, it will have an economic impact of up to 12 times. He also considered this policy to be a positive thing for the economy.

Every of our expenditures is a multiplier effect of 10 to 12 times. So whatever it is, it will definitely have a multiplier effect of 10 to 12 times with an increase in traffic and multiplier effect in various destinations," he explained.