Jokowi orders recalculation of avtur price

Jokowi orders recalculation of avtur price

Aircraft fuelling depo at Halim Perdanakusuma airport in Jakarta. (Doc. ANTARA PHOTO/Aprillio Akbar)

Jakarta, (ANTARA News) - President Joko Widodo (Jokowi) has ordered recalculation of the price of aviation turbine fuel (avtur) to make it more efficient.

"We have just discussed this at the meeting. I have ordered to recalculate this. Which part should be more efficient, we will soon take decision on this. Soon," Jokowi stated here on Wednesday.

Earlier on Monday, Chairman of the Indonesian Hotel and Restaurant Association (PHRI) Haryadi Sukamdani complained that the increased airfare has undermined the country's tourism sector.

Sukamdani also expressed hope for the government to seek solution on avtur selling, which is currently being monopolized by state-run oil firm Pertamina.

However, the president could not confirm when the avtur price could be lowered. "Well, after we recalculate this."

Avtur price has contributed to 24 percent of air ticket price, according to the Ministerial Decree no. 14/2016.

Airlines evaluation showed that avtur price has contributed to 40 percent of operational cost; thus, it would need further evaluation on components that might affect the basic price of airfares.

The government has since 2003 imposed 10 percent of added-value tax for transaction of avtur for air transportation, higher than the taxes in neighboring countries in Southeast Asia which were only set at one digit.

Reporting by Desca Lidya Natalia