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View all search resultsTourism Minister backs proposal to eliminate tax on flight tickets
Sandiaga said lowering ticket prices could help increase the spending of domestic tourists and that could compensate the loss of potential revenue from taxing airfare.
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Green flight: Technicians prepare a Garuda Indonesia plane for a test flight using sustainable aviation fuel on Oct. 27, 2023, at Soekarno-Hatta International Airport in Tangerang, Banten. The plane successfully landed in Adi Sumarmo Airport in Surakarta, Central Java, later that day.
(Antara/Farhan Arda Nugraha)
T
ourism and Creative Economy Minister Sandiaga Uno said he agreed with the idea of reducing airline ticket taxes, arguing this could help make ticket prices more affordable for fliers.
Sandiaga said lowering ticket prices could help increase the spending of domestic tourists and that could compensate the loss of potential revenue from taxing airfare.
“The cause of high flight prices is the tax,” Sandiaga said on Tuesday as quoted by state news agency Antara.
Sandiaga was responding to a proposal coined by the Transportation Policy Agency under the Transportation Ministry that explored ways to lower domestic flight ticket prices.
"So, we have to find a policy mix that can cover the loss of tax revenue from flight tickets while [state revenue] actually increases from the movement of domestic tourists," said Sandiaga.
Domestic flight prices in Indonesia are exorbitant, according to entrepreneurs, and this is impeding the country's tourism industry recovery.
According to Statistics Indonesia (BPS), just 62.55 million people flew domestically last year, which was lower than the pre-pandemic figure of 76.69 million in 2019.
