The Indonesian Ministry of Transportation (MoT) has approved a USD 14.75 million stimulus package for the aviation industry. The package removes the passenger service charge at 13 airports and provides subsidies for a flight facility calibration fee.
The funding will be drawn from the Tourism and Creative Economy budget and is targeted to boost passengers’ demand as well as reduce the cost of airport operators conducting business in tourist destinations. Typically, passenger service fees at these airports range from IDR 50,000 (USD 3.5) to IDR 130,000 (USD 9.2).
Applicable airports include Hang Nadim Airport (Batam); Bimbing Sari Airport (Banyuwangi); Soekarno Hatta International and Halim Perdanakusuma Airport (Greater Jakarta); Ngurah Rai Airport (Denpasar); Kualanamu Airport (Medan); Labuan Bajo Airport (Komodo); Lombok International Airport (Lombok Praya); Sam Ratulangi Airport (Manado); Jenderal Ahmad Yani Airport (Semarang); Yogyakarta International Airport and Adi Sutjipto Airport (Yogyakarta); Silangit Airport (Siborong Borong).
Due to the COVID-19 pandemic, the International Air Transport Association (IATA) estimates that the Indonesian aviation industry would experience a reduction of almost 50% in passengers and more than USD 8 billion in loss of revenue.
(Sources: Garuda Indonesia; The Jakarta Post)
