Increase in Airport Tax Would Cause More Expensive Airfare in Indonesia: Association

JAKARTA, KOMPAS.com – Chairman of the Users of Indonesian Aviation Services Association (Apjapi) Alvin Lie highlighted the sudden increase in the passengers service tariff (PJP2U) or also known as airport tax.

Alvin regretted that the increase took place without any familiarizing program done by the government.

“No familiarization program was done prior to the increase in the airport tax that has been implemented since June 2022 in some places, where the increase reached 20 to 40 percent on average,” said Alvin when contacted by Kompas.com on Friday, July 15.

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He said that the increase has directly impacted the air passengers because the airfares become more expensive, which was previously already affected by a spike in the fuel price.

“The airfares go up. Some airlines that operate propeller planes have cut their routes because they are no longer able to provide services, even at the maximum price they still lose,” he said.

Alvin said the government should be able to control the airport tax amid the fuel price hike.
He gave an example that the airport tax could be borne by the government as was done last year to maintain the air transportation industry.

“To survive, the government could temporarily pay the value-added tax (PPN) of 11 percent. I am worried if it goes up, the market can’t pay it as the price is above the public’s purchasing power.”

(Writer: Haryanti Puspa Sari | Editor: Yoga Sukmana)

Source: https://money.kompas.com/read/2022/07/15/142032626/airport-tax-naik-harga-tiket-pesawat-bakal-makin-mahal.