Minister Sumadi Seeks to Remove Import Tax on Airplane Spare Parts

Jakarta – The Indonesian Transportation Minister Budi Karya Sumadi has promised to remove import tax on Airplane spare parts.

If the spare parts tax is removed, it can reduce airline operating costs. The Transportation minister will also visit Finance Minister Sri Mulyani Indrawati to discuss this issue. 

"Later I will ask for (the elimination of spare parts tax) and I will visit Minister Sri Mulyani to convey this," said Minister Sumadi at INACA's 53rd AGM, in the Central Jakarta, on Thursday. 

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Sejumlah teknisi memeriksa beberapa bagian pesawat di bengkel Merpati, Surabaya.

Photo :

• ANTARA/Eric Ireng

Minister Sumadi expressed his hope that the elimination of the airplane spare parts tax will have an impact on airplane ticket prices, which are likely to fall along with the decline in airline operating costs. 

In addition to cutting airline operating costs, this step was also taken to support domestic Maintenance, Repair, and Overhaul (MRO). 

"We can do this opportunity and become more competitive for MRO. MRO is not only for Indonesia. But if it enters here, the spare parts are taxed, that is what happens," the Minister remarked. 

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Menhub Budi Karya Sumadi.

Photo :

• M Yudha P / VIVA.co.id

Minister Budi Karya Sumadi said the challenges faced by the aviation industry include the limited number of aircraft fleets, limited spare parts, and high fuel prices.

Therefore, if the tax on aircraft spare parts can be eliminated, it will help airlines to cut their operational costs, as well as eliminate some of the obstacles they face.

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Source : M Yudha P / VIVA.co.id