Indonesian Political, Business & Finance News

Zero-percent tax plan for aircraft parts remains in inter-ministerial harmonisation process

| Source: ANTARA_ID Translated from Indonesian | Infrastructure
Zero-percent tax plan for aircraft parts remains in inter-ministerial harmonisation process
Image: ANTARA_ID

Jakarta (ANTARA) - The Ministry of Transportation (Kemenhub) has stated that the plan to implement a zero-percent tax on imported aircraft parts is still undergoing harmonisation across ministries to support operational efficiency and strengthen the national aviation industry.

Agustinus Budi Hartono, Director of Air Transport at the Directorate General of Civil Aviation, said that discussions regarding the policy are ongoing and are expected to be finalised in the near future.

“Hopefully, the exemption of import duties on spare parts can also be realised quickly. This should be completed soon as it has already been harmonised,” said Agustinus in a statement in Jakarta on Sunday.

According to Agustinus, the substance of the policy—covering both import duty exemptions and taxes on aircraft parts—has undergone harmonisation with several relevant ministries as part of the government’s regulatory refinement.

“It has been harmonised with the Ministry of Industry; now it is only with the Ministry of Finance,” he added.

Kemenhub hopes that the policy will be issued promptly, as it is believed to provide tangible benefits for airlines by reducing operational burdens and increasing business efficiency.

“The hope is that it can be released soon, as it could assist our colleagues in the airline industry,” he said.

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