Aviation Industry Affected By Rupiah Exchange Rate, INACA Asks Government To Relax

Chairman of INACA Denon Prawiraatmadja. (Photo: Mery Handayani/VOI)

The weakening of the rupiah exchange rate against the United States (US) dollar has an impact on various sectors, including the aviation industry.

The reason is, several components in the aviation industry use US dollars, one of which is aviation fuel.

Therefore, the Association of Indonesian National Aviation Airlines (INACA) requested that the government through the Ministry of State-Owned Enterprises (BUMN) provide relaxation to airline activities in the field.

"We hope that later from the Ministry of SOEs, it may be possible to provide relaxation for activities from the current airport, so that in responding to the high exchange rate of rupiah currency, it can help the airline industry continue to survive," said the Chairperson of INACA, Denon Prawiraatmadja on the sidelines of the 'Indonesia Aero Summit 2024' event at the Redtop Hotel, Pecenongan, Central Jakarta, Tuesday, July 2.

Denon explained that the relaxation in question is related to taxation, incentives, and avtur prices which are feared to increase due to the impact of the lower rupiah exchange rate.

Regarding the avtur, Denon admitted that he had communicated with PT Pertamina (Persero) regarding the potential increase in fuel prices for avtur.

He said the move was an effort to overcome the weakening impact of the rupiah exchange rate on the US dollar.

However, continued Denon, relaxation for the aviation industry sector needs encouragement from across ministries, both the Ministry of SOEs, the Ministry of Finance, the Ministry of Tourism and Creative Economy, and the Ministry of Transportation.

"For our aviation fuel, we have communicated directly with Pertamina. So this is also part of the efforts made by INACA, so that the relevant Ministries can find solutions related to the increase in the exchange rate of US dollars against rupiah," he said.

On the other hand, Denon said, his party had also communicated with the Ministry of Transportation to respond to this impact through increasing traffic and implementing incentives.

"Maybe the solution is not just incentives, but how can we increase traffic in a fast time. Because there are many solutions and FGD that we are trying to do," he said.

"So the cost management for earlier was asked, is this still quite promising because we are an archipelagic country, which is there is no other choice for traveling in Indonesia by flight, we have to think about it across ministries earlier," he continued.