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New Tax At Soekarno-Hatta Airport, Indonesia

by Mary Swire,, Hong Kong

21 October 2008

The Tangerang Municipal Council is drafting a by-law to enable them to claim a new fee upon departures at Soekamo-Hatta International Airport. The new fee is being called a 'donation’ but will be mandatory for all passengers departing from Terminal 2.

Travelers departing from Soekarno-Hatta International Airport are already required to pay an airport tax ranging between IDR25,000 and IDR100,000 for domestic flights and international flights respectively. The extra ‘Tangerang Municipal fee’ will be collected alongside airport tax which is collected when passengers check in for their flights.

The fee is legal under Indonesian regional autonomy laws and allows an extra fee of up to 10% to be imposed on top of the original airport tax. It is expected that the Council will opt to set the rate as close to this ceiling as possible.

Council speaker Endang Sudjana spoke after the bill was announced: "the fee may be 10% of airport taxes for domestic and international flights. For example, if the domestic tax is IDR25,000, each passenger will pay IDR2,500. For international flights, the fee may be IDR5,000," he said.

It looks almost certain that the by-law will go ahead. The council commented: "We will soon approve the transportation by-law which will function as the administration's legal umbrella to collect fees from passenger taxes." He added, "We will propose the revenue collection from passengers first. Later we will consider other sources which are under the regency's authority and we are sure that airport operator PT Angkasa Pura II will listen to our wishes."

Sudjana defended the decision, insisting that it was moving in line with other regions. "We found that most of other regional administrations obtain revenue from air transportation activities and we have yet to do so. The airport has been operating a long time and we have only been collecting taxes on the land and the buildings. We do need to clarify that the company collects no tax from passengers. Only the government does so.”

The council said the by-law is expected to be approved by the end of the month.

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