At the moment, the government is preparing various fiscal incentives for airlines to alleviate their burdens as one of the government’s efforts to decrease airfares. According to the Coordinating Minister for Economic Affairs, Darmin Nasution, the fiscal incentives which are under finalization are related to equipment leasing and aircraft repair services, aircraft leasing services from outside a customs area, and import as well as delivery of aircrafts and spare parts.
According to the Secretary of the Coordinating Ministry for Economic Affairs, Susiwijono, those fiscal incentives will be regulated by a government regulation. Airlines also request the exemption from import duty and tax on spare parts and aircrafts, but the government still needs time to review the request.
Previously, the Ministry of Transportation has issued Decision of the Minister of Transportation Number KM 106 Year 2019 regarding Upper Limit Rates for Passengers of Economy Class Services of Domestic Scheduled Commercial Air Transports. Unfortunately, the government’s effort to decrease airfares by issuing such decision has not been satisfactory to the community.
Source : https://legalcentric.com/content/view/140672