aviation

The Aviation Sector Is Feeling The Impact Of The Depreciation Of The Rupiah, Prompting INACA To Request For Some Relief Measures

The Indonesian National Aviation Companies Association (INACA) has urged the government to consider providing relief measures to cope with the impact of the depreciating rupiah exchange rate.

The relief measures could involve tax breaks on aircraft spare parts procurement, incentives, adjustments in Aircraft Passenger Service Charge (PSC) rates, and potential reductions in avtur fuel prices.

INACA Chairman Denon Prawiraatmadja disclosed this during a meeting at the Indonesia Aero Summit 2024 in Jakarta on Tuesday, February 7, 2024.

Denon expressed optimism that the ministry might offer some relief for the current airport operations in order to assist the airline industry in weathering the challenges posed by the high rupiah exchange rate.

IN its endeavor to advocate for relaxation, INACA sought cross-ministerial assistance from the Ministry of State-Owned Enterprises (SOEs), the Ministry of Finance, the Ministry of Tourism and Creative Economy, the Ministry of National Development Planning (PPN)/Bappenas, the Ministry of Transportation (Kemenhub), as well as SOEs like PT Pertamina (Persero) and PT Angkasa Pura Indonesia (Persero).

As of today, the rupiah exchange rate stands at IDR 16,300 per US dollar. INACA aims to conduct meetings with organizations or institutions that contribute to the costs of our operational activities," he mentioned.

Moreover, INACA also anticipates that the Ministry of Transportation will make a decision to no longer base airplane ticket prices on the upper limit tariff (TBA).

Tag: Aviation Sector INACA