Indonesia Waives Airport Tax to Make Way for Cheaper Air Travel

JAKARTA, KOMPAS.com – The Indonesian government is paying for your airport tax in 13 airports across the country in a move geared at making air travel cheaper.

Waiving the Passenger Service Charge (PSC) in 13 Indonesian airports is aimed to encourage the public to purchase more cost-effective flight tickets in a bid to revive the airline industry.

“Every passenger (in the 13 airports) will be alleviated from any PSC which will no longer be part of ticket prices. Instead, the PSC will be charged by the operator to the Indonesian government,” said Novie Riyanto, Director-General of Civil Aviation of Indonesia’s Ministry of Transportation.

Read also: Airport Operator Angkasa Pura I Upbeat on Indonesia’s Airline Industry Revival

The 13 airports subject to the tax incentive include Soekarno-Hatta Airport, Hang Nadim Airport, Kualanamu Airport in Medan, I Gusti Ngurah Rai Denpasar Airport in Bali, Kulon Progo International Airport in Yogyakarta; Lombok Praya International Airport; Ahmad Yani Airport in Semarang; Sam Ratulangi Airport in Manado; Komodo Labuan Bajo Airport Silangit Airport; Banyuwangi Airport and Adi Sucipto Airport.

Novie hopes that by making air travel in Indonesia more affordable, the public will be more receptive to taking modes of air transportation. Should it succeed, the national economy stands a chance at recovery.

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“The hope of the stimulus is for the public to feel less of a financial burden when purchasing flight tickets to any destination thus triggering a significant impact on regional economic growth. Even in the midst of the coronavirus pandemic, those opting for air transportation will need to respect Covid-19 health protocols,” said Novie.

The government’s stimulus package will go into effect on October 23 until December 30, 2020, and will cost a total of approximately Rp 175.7 billion.

Read also: Indonesia Dangles Tour Package Discounts for Locals to Prop Up Tourism Sector

Travelers can take advantage of cheaper air travel in Indonesia upon purchasing tickets for flights which stop or take off in any of the 13 airports, however, trips must be within this year or before January 1, 2021.

The Indonesian government will also subsidize flight calibration fees amounting to Rp 40.8 billion that had previously been borne by airport operators.

(Writer: Akhdi Martin Pratama | Editor: Yoga Sukmana)

Source: https://money.kompas.com/read/2020/10/22/163200226/tanggung-airport-tax-pemerintah-siapkan-rp-175-7-miliar