Air passengers must pay service charge directly

JAKARTA (JP): Domestic air passengers will now be directly responsible for paying the government's Passenger Service Charge (PSC), which used to be added into the price of an airline ticket.

Passengers will pay the PSC directly to airport managements starting today to smooth the flow of funds to the government, the Director of Civil Aviation Zainuddin Sikado said yesterday.

He added that the new regulation was based on a decree signed by Minister of Transportation Haryanto Dhanutirto on June 25.

Previously, the domestic airport charge was integrated into airline ticket fares and ticket-issuing offices were responsible for transferring the charges collected to the government.

"The separate payment is necessary to secure a fast transfer of the proceeds to the government," he said, hinting that companies were often late in transferring the money earned on the charge.

PSCs in the country range from Rp 10,000 (US$4.20) to Rp 3,500 per trip, depending on the class of the airport. The charge is subject to 10 percent value added tax.

Based on the new regulation, domestic air passengers will still pay airfare prices to airlines and travel agents but will pay the PSC at the airport.

Infants, foreign delegations on official visits, civil aviation officials on official duty, transit passengers with direct-flight connections and extra air crew members registered on manifest lists are exempt from the charge.

The country's major airports are managed by two state-owned firms, PT Angkasa Pura I and PT Angkasa Pura II. Smaller airports in the country are run by the government.

A spokeswoman for Angkasa Pura II said that her company had expected to earn about Rp 75 billion and Angkasa Pura I Rp 30 billion from the charges collected from airlines last year.

She refused, however, to reveal how much they came up short.

Angkasa Pura II manages nine airports in Indonesia's western provinces and Angkasa Pura I manages 12 airports in Java, Bali and the eastern provinces.

Sikado also announced yesterday new levels of compensation for the victims of flight accidents or disasters.

The maximum compensation for a death is Rp 40 million and Rp 50 million (US$21,294) for those who suffer permanent disabilities.

The maximum compensation for lost registered-baggage has been set at Rp 100,000 per kilogram. (icn)