INACA, Govt Discuss Ways to Drop Airfares
Translator
Ricky Mohammad Nugraha
Editor
Laila Afifa
Kamis, 26 Desember 2019 22:05 WIB
TEMPO.CO, Jakarta - The Indonesian National Air Carrier Association (INACA) met with Coordinating Minister of Economic Affairs, Airlangga Hartarto, at the ministry’s headquarters to negotiate a looser rule on spare parts imports and equal distribution of jet fuel. All of this was pitched to reduce the prices of airfares.
“We have only suggested it,” said INACA Chairman Denon Prawiraatmadja on Thursday, December 26.
Denon understands that the suggestions the organization pitched to the minister need the involvement of numerous state-ministries in its execution.
As of spare parts imports, INACA referred to similar rules applied by Malaysia that only administers 17 percent import tax, compared to Indonesia’s current 49 percent import tax.
INACA’s jet fuel, or avtur, distribution was mentioned as an element that could reduce airfares as it is one of the few items that directly correlates to the price of flights. Despite not giving a specific prediction of the drop of flight tariff, Denon said it will be further suppressed a low as possible if the requests are heard.
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