Inaca Apply for 40 Percent Limit Tariff Adjustment

By : Herry Barus And Aldi Firhand. A | Tuesday, May 29 2018 - 19:50 IWST

Visitors observed the aircraft owned by the airline PT Garuda Indonesia at Garuda Indonesia Travel Fair (GATF) 2017 in DI Yogyakarta, Friday (10/3). (ANTARA / Andreas Fitri Atmoko)
Visitors observed the aircraft owned by the airline PT Garuda Indonesia at Garuda Indonesia Travel Fair (GATF) 2017 in DI Yogyakarta, Friday (10/3). (ANTARA / Andreas Fitri Atmoko)

INDUSTRY.co.id - Jakarta - The Indonesian National Aviation Company Association (Inaca) has submitted a lower tariff limitation of 40 percent of the upper limit tariff to the Ministry of Transportation following the increase in fuel prices for aviation aircraft that currently has reached 40 percent.

Chairman of Inaca Pahala N Mansury said both from Inaca and Garuda Indonesia Airlines have submitted the limit adjustment since mid-2017.

"Now the lower limit rate of 30 percent of the upper limit rate, we expect to be re-adjusted again as before 40 percent of the upper limit rate," said Pahala in his presentation in Jakarta, (28/5).

The reward describes 90 percent of the expenditures made in US dollars, and 30 percent of the operational cost is for the purchase of aviation fuel. Thus, the current increase in operating costs reaches 17 percent with a currency depreciation of four to five percent.

"Our expenditures are almost all in dollars, while the revenue in rupiah, so it is not balanced, last year the price of aviation was 29 percent lower, now 12 percent more expensive," he said.

Currently, Pahala said it is hoping and awaiting the results of the study and evaluation of the government for the submission of the rate increase. However, he added, for this festive season Eid, still use the old rates.

Previously, the Director General of Air Transportation of the Ministry of Transportation, Agus Santoso, will not review the lower tariff hike since it is still waiting for fuel price trends and fluctuations in the rupiah against the US dollar for the next three months.

"We wait until the 10 percent increase, then we evaluate," he said.

News Comment

Today's Industry

PT Surya Esa Perkasa Tbk. (ESSA: IJ)

Selasa, 26 September 2023 - 07:45 WIB

ESSA Secures Gas Contract Extension for LPG Refinery

PT Surya Esa Perkasa Tbk. (ESSA: IJ), a publicly listed company engaged in the Energy and Chemical sectors through its LPG (Liquefied Petroleum Gas) refinery and Ammonia plant today (22/9) announced…

(kiri-kanan) Cahyo (operations manager PT Eco Paper Indonesia), Kuswara ( Direktur ALDO), Herwanto Sutanto (Presdir ALDO), dan Herlambang Putra Sujadi (Direktur PT Eco Paper Indonesia)

Selasa, 26 September 2023 - 06:45 WIB

ALDO Strengthens PT Eco Paper’s Business of Recycled Brown Paper Production

PT Alkindo Naratama Tbk (ALDO), a listed company engaged in the integrated paper and chemical business, plans to inject additional working capital of around IDR 40 billion into its subsidiary…

"CLEO", PT Sariguna Primatirta Tbk (Tanobel Group)

Sabtu, 23 September 2023 - 11:33 WIB

Growing Above Industrial Average, CLEO Strives for Innovation

Producer of bottled drinking water with the brand "CLEO", PT Sariguna Primatirta Tbk (Tanobel Group) targets its sales in 2023 to grow above the average of the bottled drinking water (AMDK)…

PT Inocycle Technology Group Tbk ("INOV")

Kamis, 14 September 2023 - 15:15 WIB

INOV Poised to Absorb PET Recycling Market Potential

The prospects of PT Inocycle Technology Group Tbk ("INOV") a public company in the field of recycling plastic (PET) bottle waste into Recycled Polyester Staple Fiber (Re-PSF), looks bright for…

Participants of the 43rd ASEAN Summit enjoy the gala dinner at Hutan Kota GBK in Jakarta, Wednesday (09/06). (Photo by: BPMI of Presidential Secretariat)

Senin, 11 September 2023 - 09:07 WIB

Indonesian Cuisine, Cultural Performances Enliven Gala Dinner of 43rd ASEAN Summit

President Joko “Jokowi” Widodo and First Lady Iriana Jokowi hosted a gala dinner for leaders of ASEAN member states, partners, and international organizations at Hutan Kota restaurant in…