Never-Ending Incentives for Airlines

Summary

The government is preparing incentives for airlines, following the impact of the novel coronavirus (Covid-19) on the country's aviation business. These include a reduction in non-tax state revenue (PNBP) levy and rate discounts related to the use of airport facilities.

Transportation Minister Budi Karya Sumadi said the proposal for relaxation would be discussed with the Finance Ministry, which is authorized for the regulation. According to him, the airline must pay a PNBP levy totaling Rp 60 million for each flight.

The Transportation Ministry will also communicate with state-owned airport operators, PT Angkasa Pura I and PT Angkasa Pura II. The airport operators are expected to reduce landing fees, parking fees, and room rental discounts at the airport.

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