inp.polri.go.id - Jakarta. Transportation Minister Budi Karya Sumadi, revealed that there are four ways related to the format for reducing airline ticket prices.

"I have said that there are four formats for reducing ticket prices. The method that should have been executed is the first one related to tax on spare parts," said the Minister of Transportation, on Friday (9/21/2024).

The spare part tax has a multiplier effect, on the one hand lowering ticket prices and the second is providing more jobs in Indonesia. He believes that the spare part tax caused aircraft from Indonesia to be repaired abroad, which caused a capital flight.

"That is being discussed, basically the Ministry of Finance agrees to it," he said.

He further stated that the second method is avtur with a multiprovider which has been submitted and discussed in a meeting with the Coordinating Minister for Maritime Affairs and Investment.

There are several provisions that must be fixed, if they can be fixed then there will be a significant reduction in regulations that will also have an impact on ticket prices.

"Then there is Value Added Tax (VAT). VAT is indeed imposed on aviation fuel and passengers, indeed it can be managed with input VAT and output VAT, but the cumulative is 10 percent. In some countries it does not happen, we understand that if this is eliminated then there will indeed be an impact on other taxes," he explained.

Currently, airplane transportation is no longer a tertiary need for the community, because people in various regions of Indonesia expect flights.

(ad/fa/pr/nm)