Indonesia Eases Airline Burden Amidst Jet Fuel Price Surge
Translated from Indonesian, summarized and contextualized by DistantNews.
TLDR
- Indonesian lawmaker Bambang Haryo Soekartono (BHS) supports the government's decision to increase fuel surcharges by 38% to offset a 70% rise in jet fuel prices.
- The government is easing the burden on airlines by reducing VAT on tickets and eliminating import duties on spare parts.
- BHS suggests further measures like reducing airport taxes and optimizing air traffic control to prevent unnecessary fuel consumption, potentially avoiding ticket price hikes.
From Jakarta, Republika notes the government's proactive steps to manage the impact of soaring jet fuel costs on air travel. Lawmaker Bambang Haryo Soekartono (BHS) commends the administration's strategy, which includes a 38% fuel surcharge increase and measures to alleviate airline financial pressures. These measures, such as VAT reductions and duty exemptions on aircraft parts, aim to stabilize ticket prices.
Bahan bakar itu mengambil sekitar 40 persen dari total cost airline. Artinya, dengan menaikan 38 persen, artinya akan ada kenaikan 13 persen dari total cost. Dan jika ada kenaikan (harga tiket) 10-13 persen itu wajar.
BHS emphasizes that fuel constitutes a significant portion of airline operational costs. While a 38% increase in fuel costs translates to a 10-13% rise in overall expenses, the government's interventions are designed to absorb this shock. He highlights that a 11% VAT reduction on ticket revenues already provides substantial relief, and a further 50% cut in airport taxes could offset the remaining cost increase, thereby preventing a direct hike in fares for consumers.
PPN tiket itu kan 11 persen. Ini dari pendapatan yang, bukan dari biaya. Berarti pendapatan maskapai sudah masuk 10 persen.
Furthermore, BHS points to the potential for improved air traffic management to reduce fuel wastage. Holding patterns and delays can consume up to 10% of flight time and fuel. By streamlining air traffic control, the government can help airlines minimize these inefficiencies. Republika views these combined efforts as a comprehensive approach to ensure the affordability and accessibility of air travel for the Indonesian public, even amidst global price volatility.
Karena, dengan adanya komponen-komponen di atas, pihak maskapai sudah tertutup kerugian akibat naiknya biaya avtur.
Originally published by Republika in Indonesian. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.