Economy Policy

The Reasons Indonesian Avtur More Expensive than Singapore

Avtur prices at airports in Indonesia are still more expensive compared to Singapore Changi Airport. The high price of avtur is because the ticket prices are also expensive.

The government answers why the price of avtur in Indonesia is more expensive than in Singapore.

BUMN Minister Rini Soemarno said, the price of avtur at airports in Indonesia is actually not much different from Singapore. What distinguishes only the composition of the tax.

“We are not much different from Singapore. There is only the most important difference in taxes, we are subject to VAT, there is no hit,” Rini said at the State Palace, Jakarta, Wednesday (02/13/2019).

Rini said that the government was also seeking to eliminate the VAT for aircraft fuel. The matter, Rini said that it had been proposed to the Ministry of Finance. Rini hopes that the avtur PPN will be abolished so that the formula costs the same as Singapore.

“The hope is eliminated,” said Rini.

Previously, Aviation Expert Alvin Lie said that the price of avtur at Soekarno Hatta Airport was more expensive than that sold at Singapore Changi Airport. The difference is 10%.

“So, the price (avtur) of Pertamina in Soekarno Hatta, Kualanamu and Soetta is different. If you use Soekarno Hatta compared to Changi, it’s about 5-10% more expensive,” Alvin said. (zlf / eds)

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