TEMPO.CO, Jakarta - The Indonesian Aviation Service Users Association (Apjapi) stated that the aviation industry in Indonesia is affected by the Rupiah depreciation.

"The exchange rate of Rupiah creeps into Rp16,000 per US dollar, while the budget for aviation operation cannot be untangled with the rupiah exchange rate," said Apjapi Chairman Alvin Lie in Jakarta on Friday. On Friday morning, the exchange rate of Rupiah reached Rp15,920 per US dollar.

Additionally, Alvin mentioned that there are three main components in the aviation operational budgeting scheme, namely avtur at around 36 percent, maintenance at around 16 percent, and rental at 14 percent, with a total of 66 percent. These components follow Rupiah's fluctuating exchange rate.

"Thus, when Rupiah weakens, it bears a lot of burden into the aviation industry, especially Indonesian airlines that depend on domestic routes," he said.

Domestic route' tickets are being sold in Rupiah while the fares spent by the aviation industry use US dollars. "So, on paper, it seems like the airlines are gaining profit while it's anything but profitable. This is the challenge faced by aviation airlines every day," he said.

AMELIA RAHIMA SARI | ANTARA

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