Holiday Ayo - Minister of Transportation (Menhub) Budi Karya Sumadi said that there are four format-related ways to reduce domestic airplane ticket prices.

First, it relates to taxes on aircraft spare parts. According to Budi Karya, this tax can have an impact on a number of things.

"Because the spare parts tax has a multiplier effect, one side is reducing ticket prices, the second is providing employment opportunities in Indonesia," he said after a meeting with Commission V DPR RI at the Parliament Complex, Senayan, Jakarta, Friday (20/9).

"So if tax is imposed, the planes from Indonesia will instead be repaired abroad, so there will be capital flights resulting from taxes on spare parts. This is being discussed, basically the Ministry of Finance agrees," he explained.

Second, it opens up opportunities for the private sector to become providers of aviation fuel (avtur).

According to Budi Karya, the plan has been discussed with the Coordinating Minister for Maritime Affairs and Investment (Menko Marves) Luhut Binsar Panjatan.

In the discussion, Budi said that there needed to be a number of provisions regarding aviation fuel that had to be improved. However, he has not explained further what provisions are meant.

"If this can be improved, there will be a significant reduction in aviation fuel (prices) which will also have an impact on reducing ticket prices," he said.

The third and fourth steps relate to the imposition of value added tax (VAT) on aviation fuel production and passengers.

Conditions like this do not occur in other countries. Budi Karya revealed that VAT could originally be applied to VAT on income and expenses.

It's just that, if accumulated, the amount reaches 10 percent.

"We understand that if this is eliminated there will be an impact on other taxes, but it must be understood that air transportation is the only one subject to VAT," said Budi Karya.

He added that these four things had been conveyed to the Airline Ticket Price Task Force. Later the Task Force will decide on the follow-up to this problem.