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Tax at three airports in Sumatra to go up

State-run airport operator PT Angkasa Pura II (AP II), overseeing airports in the western part of the country, is set to increase the passenger service charge (PJP2U), or airport tax, in three of the airports it manages starting on May 1

Nadya Natahadibrata (The Jakarta Post)
Jakarta
Wed, April 30, 2014

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Tax at three airports in Sumatra to go up

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tate-run airport operator PT Angkasa Pura II (AP II), overseeing airports in the western part of the country, is set to increase the passenger service charge (PJP2U), or airport tax, in three of the airports it manages starting on May 1.

Transportation Minister EE Mangindaan said on Tuesday that the ministry had approved the operator'€™s proposal to increase the airport tax for Kuala Namu International Airport in North Sumatra, Syarif Kasim II International Airport in Riau and Raja Haji Fisabilillah Airport in Riau Islands.

'€œWe will gradually increase the tax starting on May 1. We are currently communicating with the public about the increased charge and we will see how it goes,'€ Mangindaan told reporters on the sidelines of the opening of the 2nd Aviation MRO Indonesia event.

'€œIt will be up to AP II regarding the amount of the increase. Our instruction is clear that the increase should be done gradually, between 10 to 20 percent more than the current tax,'€ he said.

Mangindaan said that his ministry had consulted with the Indonesian Consumer Protection Foundation (YLKI) as well as passengers regarding the plan to increase the charge.

'€œBasically, the increased charge is not aimed to increase the airport operator'€™s profit but to increase the airport'€™s services, because as a state-owned enterprise, AP II need adequate funds to develop these airports,'€ Mangindaan said.

Currently, for every domestic flight at Kuala Namu, Syarif Kasim and Raja Haji Fisabilillah airports, passengers are charged Rp 35,000 (US$3.00), Rp 30,000 and Rp 20,000, respectively.

Meanwhile, for international flights the cost is currently Rp 75,000 at Kuala Namu and Syarif Kasim airports and Rp 50,000 at Raja Haji Fisabilillah airport.

AP II president director Tri Sunoko previously said that the ideal international flight service tax for the newly opened Kuala Namu airport would be Rp 150,000 due to the Rp 2.4-trillion price tag for constructing what is the country'€™s most modern airport.

AP II corporate secretary Daryanto said the airport operator was still waiting for an official statement from the ministry regarding the proposed tax increase.

'€œWe cannot disclose the amount of the increase before we receive the official statement from the ministry,'€ Daryanto said.

Last month, AP II sister company PT Angkasa Pura I, which manages airports in the eastern half of the country, increased the airport tax in five international airports to maintain the airports'€™ quality of service.

For every domestic flight at Bali, East Kalimantan and East Java airports, passengers are charged
Rp 75,000, while for international flights the cost is Rp 200,000.

In South Sulawesi, the taxes for domestic and international flights are Rp 50,000 and Rp 150,000, respectively.

At Lombok Praya International Airport passengers pay Rp 45,000 in airport tax for domestic flights and Rp 150,000 for international.

The Ngurah Rai International Airport in Bali will also see its airport tax rise beginning the first day of August, following the completion of renovations to its domestic terminal.

Meanwhile, airline analyst Arista Atmadjati said airport operators should not be in a rush to increase the airport tax, as it would be an additional burden on customers after a recently imposed surcharge due to higher fuel prices.

'€œAirports should not pass on huge construction costs to customers when they already receive an allocation from the APBN [state budget],'€ Arista said.

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