Traveling is everyone's hobby. The Indonesian government is struggling to make it cheaper. (Image via: Nomadic Matt)

For Cheaper Flight, Indonesian Government to Exempt Customs for Plane's Spare Part

Alfonsus Adi Putra
Market & Investment
Indonesia Market
Jun 26, 2019
2920
The rocketing flight ticket price has been a trending topic among Indonesian travelers. Nonetheless, their prayers have been answered. According to a statement by PT Garuda Maintenance Facility Aero Asia Tbk (GMF) on Tuesday by Acting President Director of GMF, Tazar Marta Kurniawan, they are currently discussing an idea with the Indonesian government to exempt tax customs for plane’s spare parts. By pressing the operational cost of the airline, the price ticket is expected to go down as well.

He revealed that from around 300 spare parts, only 20 got the exemption. The rest were slapped by 5%-20% tax customs tariffs. On the other hand, Kurniawan pointed out that the real contributor in determining flight price is the cost of maintenance for the plane’s machine.

In fact, these planes travel abroad to have their machines done. Indonesia only has 2 licenses for machinery maintenance for A320 and Boeing 737. The closest country for maintenance is Malaysia.

“It (the exemption) existed before, however not wholly. We are now talking with Minister of Industry and Minister of Finance in order to make the tax exemption even for all the spare parts,” stated he.

From the government itself, Value Added Tax (VAT) is already being exempted for planes rented from abroad in order to make the ticket cheaper.

Source: https://www.cnnindonesia.com/ekonomi/20190625182901-92-406362/demi-tiket-murah-bea-masuk-suku-cadang-pesawat-dibahas

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