Ignasius Jonan

Ignasius Jonan – Indonesia Transportation Minister

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Indonesia to include airport departure tax – Update

The newly appointed Transportation Minister, Mr Ignasius Jonan, has instructed airlines to include the Passenger Service Charge (airport tax), to be included in the ticket. The deadline for the implementation was initially January 1st, 2015 but has been moved backward to March 1st, 2015 to give some more time to airlines both domestic and foreign.

At a recent annual meeting of the Indonesia National Air Carriers Association (INACA), the Minister said that “Airlines have no other choice but to follow”.

So how about the readiness of the airports?

Daryanto, Corporate Secretary of the airport operator (Angkasa Pura II), explains they are finalizing the implementation of the integration of  airport tax payments with tickets. PSC, or more commonly called airport tax, is a levy that is charged by the airport operator as a source of income.

“Our target is 1st January. That is what we are working towards to now and we will start the bilateral talks” said Daryanto to detikFinance, Friday (11/14/2014).

The state-owned airport operator will hold talks with PT Angkasa Pura I (AP I) which is a sister company to Angkasa Pura II. “We will first talk with AP I, and then talk with the airlines and listen to their input” he explained.

AP II is also considering the integration of PSC to comply with the standards of the International Air Transport Association (IATA). The reason for the meeting was looking for a solution that is mutually beneficial between the airlines, passengers and the airport operator.

Meanwhile, airlines are responding positive but still have several questions.

Garuda for example chose to implement the airport tax in 2012 with the hope that others would follow. Garuda recently decided to stop including the PSC in October 2014 as they were making losses of about Rp 2 billion (US$163,961) per month. These losses came from uncollected payments as Garuda was using the IATA system but the airport was using a different system.

Edward Sirait, LionAir’s general affairs director, asked for clear instructions on how to deal with PSC on multi stop flights. “For example, if someone buys a ticket to Gunungsitoli Airport in North Sumatra, which requires a stop at Kuala Namu, will the passenger be charged on Kuala Namu’s airport tax? The government needs to be clear about this,” he continued.

Arif Wibowo, the Indonesian National Air Carriers Association (INACA) chairman, said that a meeting was held recently between the ministry, airlines, airport operators and the IATA to discuss the procedure.

Source : Finance Detik &  Jakarta Post

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