JAKARTA - The government has issued a policy amid the dynamics of rising world oil prices. This time, the airline industry is the sector that has received attention.
Until now, the airline has been under pressure due to the rise in jet fuel prices. Jet fuel prices alone account for up to 40% of the airline's operating costs.
As a result, the government increased the fuel surcharge for all types of aircraft to 38 percent. Not only that, to prevent an increase in airfare prices, the government then covered the Value Added Tax (PPN) through the Government-Covered (DTP) scheme. This stimulus is planned to last for two months with a total budget of Rp. 2.6 trillion.
In addition, the government also provides incentives in the form of a reduction in import duties for aircraft parts to 0%. This incentive is expected to reduce airline operating costs.
A number of these incentives were immediately welcomed by the airline. The Indonesia National Air Carriers Association (INACA) assessed that the policies provided by the government were in line with the needs of the industry.
"We see that this policy is in line with the needs of airlines and the community, and there is support from the government through the temporary removal of the 11% VAT and the removal of import duties on spare parts to 0%", said INACA Chairman, Denon Prawiraatmadja, in a statement, Monday (6/4).
Denon hopes that this policy can be immediately implemented in the field so that it can help airline operations in maintaining flight safety and comfort, as well as supporting air transport connectivity.
Coordinating Minister for the Economy, Airlangga Hartarto, said this incentive was given as an order from President Prabowo Subianto.
Thus, at a time when several airlines in the world are competing to significantly raise ticket prices, the government is able to hold the rate of ticket price increases in the range of 9-13%.
"The government is preparing strategic mitigation steps so that ticket prices remain affordable for the public. So, what we are looking after is the ticket price," said Airlangga.
It is worth noting that the current domestic jet fuel price is recorded at Rp23,551 per liter. This price is still cheaper than Thailand and the Philippines, which reach Rp29,518 and Rp25,326 per liter respectively.
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