Aviation Industry Faces Avtur Price Hike, Lower Aircraft Numbers: Minister

TEMPO.CO, Jakarta - Transportation Minister Budi Karya Sumadi stated that the aviation industry is facing challenges amid the slowing down of COVID-19 cases in Indonesia, including the surge in the price of aviation turbine fuel (avtur) due to soaring global oil prices and a decrease in the number of aircraft.

Budi Karya said that during the pandemic, a number of planes were grounded due to the poor condition of airlines' financial balance.

“On this basis, it is also important to pay attention to financial support for the air transportation industry, which is now starting to rise after almost two years of being hit by the pandemic,” said Budi Karya in his statement, Thursday night, June 30, 2022.

He expressed optimism that through good collaboration between parties, such as the government, business actors, and investors, the aviation industry would overcome the challenges of economic recovery.

The former chairman of state-run airport operator AP II further asked the Chamber of Commerce and Industry (Kadin) to join the partnership. 

Indonesia Statistics (BPS) recorded that the number of domestic air passengers in the first quarter of 2022 reached 10.7 million, up by 55.5 percent year on year. Meanwhile, in the same period, the number of international air passengers grew by more than 200 percent. However, the figures have not reached normal as the pre-pandemic level. 

Therefore, Kadin chairman Arsjad Rasjid said a recovery plan is necessary to maintain the performance of the aviation industry.

HAMDAN CHOLIFUDIN ISMAIL

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