Observer: Zero percent tax on aircraft spare parts will strengthen Indonesian aviation

Jakarta (ANTARA) - Aviation observer Alvin Lie believes that the implementation of zero per cent tax on the import of aircraft spare parts will be a strategic step in reducing airline operational costs and strengthening the competitiveness of the national aviation industry.

Speaking to ANTARA in Jakarta on Sunday, Alvin stated that this policy is crucial because the national aviation industry still faces relatively high operational cost burdens compared to several other countries in the Southeast Asian region.

“Our import tax on aircraft spare parts is the highest in the Southeast Asian region,” said Alvin.

According to Alvin, the discourse regarding the removal of import taxes on aircraft spare parts was actually presented by the government about two months ago, but to date, its implementation has not yet been concretely realised.

Meanwhile, several neighbouring countries, such as Malaysia and Singapore, have implemented very low tax rates, even approaching zero per cent, for the majority of aviation components. This condition makes aircraft maintenance costs in those countries more competitive, thereby supporting operational efficiency and the sustainable development of the aviation industry.

According to Alvin, high aircraft maintenance costs ultimately affect the overall flight operational costs that airlines must bear in conducting their services.