When Asked By AirAsia Boss About The Most Expensive Indonesian Avtur Price In ASEAN, Pertamina Opens Voice

Pertamina Avtur (Photo: dock. Antara)

JAKARTA - Capital A Berhad CEO, AirAsia airline parent Tony Fernandes revealed that aircraft fuel costs in Indonesia have a tariff of around 28 percent more expensive than countries in Southeast Asia.

Responding to this, Heppy Wulansari's Corporate Secretary emphasized that the avtur price is competitive and follows the rules in force in Indonesia.

"The price of Avtur's publication in Indonesia can be said to be quite competitive. The competitive value of Pertamina's avtur publication price is also equivalent and lower when compared to the price of publication per liter in a country that has a geographical landscape resemblance," he said, quoted on Monday, September 9.

Heppy said the avtur price sold by Pertamina Patra Niaga in the September 1-30 range was IDR 13,211 per liter. This figure is much lower when compared to the avtur price in Singapore which reached IDR 23,212 per liter in the same period.

Heppy said Pertamina's avtur price had referred to the Decree of the Minister of Energy and Mineral Resources Number 17 K/10/MEM/2019 concerning the Basic Price Formula in calculating Retail Selling Prices for Types of General Oil Fuel Type Avtur which were channeled through Aircraft Charging Depots (DPPU).

He also ensured that the determination of the avtur price was also based on the Mean of Plats Singapore (MOPS) which became the closest market price benchmark. Avtur prices also consider volume demand from each airport according to the frequency of aircraft movements.

Heppy also said that the supply chain of avtur in Indonesia is more complex than other countries. Pertamina is responsible for providing avtur in 72 DPPU spread throughout Indonesia. Pertamina Patra Niaga, which is not only focused on serving Avtur at large airports, but also includes small airports that are not necessarily profitable commercially.

Indonesia's supply chain (supply chain) is more complex than other countries, including to maintain supply security in 72 DPPUs. We continue to ensure that aviation fuel needs are met throughout Indonesia, even pioneer airports, concluded Heppy.

Previously, Tony Fernandez said that the Indonesian aviation fuel price was the highest in ASEAN.

"The fuel price in Indonesia is the highest in ASEAN, around 28 percent," Tony said at a press conference held in Jakarta, Thursday, September 5.

In fact, according to him, aviation fuel tariffs in Indonesia are quite expensive compared to other countries in the world. He assessed that the lack of competition for avtur providers to become in Indonesia was the cause factor.

This was then admitted to have an impact on the airline's operational costs which resulted in the high price of domestic flight tickets in Indonesia compared to other countries.

When compared to Malaysia, there are several avtur suppliers from different companies, while Indonesia is still fully supplied by PT Pertamina.

"If there is only one in Indonesia, they can charge the costs they want," he explained.