Close
Bali Discovery Tours: Homepage
Bali Hotels, Bali Villas and Bali News from balidiscovery.com
Home Bali Contact Bali Practicalities Bali News Bali Services Bali Transportation Bali Sports Bali Excursions Bali Villas Bali Hotels
Home · News · In the Line of Duty
Bali Hotels, Bali Villas and Bali News from balidiscovery.com
Bali Hotels
Bali Villas
Special Deals!
Packages
MICE Handling
Bali Excursions
Culinary - Dining
Guided Tour
Bali Spas
Bali Sports
Diving
Golf
Bali Transportation
Car Rental - Selft Drive
Private Jet Charter
Bali News
Bali Services
Bali Practicalities
Bali Contact
Bali Career
Home
 
Bali Update
Subscribe to our free weekly newsletter!
 
PATA header
PATA Gold Award 2007
Bali Update
PATA Gold Award Winner 2007
 
Bali Contact
Bali Discovery Tours
Komplek Pertokoan
Sanur Raya No. 27
Jl. By Pass Ngurah Rai,
Sanur, Bali, Indonesia

Tel:
++62 361 286 283

Fax:
++62 361 286 284

U.S.A. Fax:(toll free)
1-800-506-8633

U.K. Fax:
++44-20-7000-1235

Australian Fax:
++61-2-94750419

24h:
++62 812 3819724

Bali Discovery

SITE PATA ASITA
Bali News

In the Line of Duty

Indonesian Airlines Call on Government to Make Aircraft Spare Parts Duty Free


Bali News: In the Line of Duty
Click Image to Enlarge

(11/15/2013)

The Indonesian Air Carriers Association (INACA) is calling on the government to eliminate import duties for aircraft spare parts in order to make Indonesian airlines more competitive internationally reduce the need for foreign maintenance and repair services 

The chairman of INACA, Arif Wibowo, said that spare parts for aircrafts must all be imported. Therefore, in order to make Indonesian air carriers more competitive in the face of coming “open sky” rules, government support is needed to reduce the high cost of import duties for aircraft spare parts.

As reported by Bisnis.com, Wibowo, speaking at the office of the Minister of Industry on Monday November 11, 2013, said competing nations such as Malaysia and Singapore do not charge import duties on aircraft spare parts. Meanwhile, in Indonesia the customs duties for these items ranges between 5-7%.

Saying some 300 different aircraft components are currently imported to Indonesia, Wibowo said suggested the INACA members would be happy if as an initial step if the current list of items being charged duties could be reduced to 200 items.

“We do not hope for too much, perhaps the initial list (of dutiable spare parts) could be reduced to 200. The Minister of Industry, Mr. Hidayat, was positive in listening to our request to assist the national airline industry," said Wibowo.

Wibowo said that the cost of spare parts comprise an average 15% of the total cost of an airline. Thus, if 5% custom’s duties were eliminated this would have a major effect on reducing airline operating costs.

“If (these duties) we eliminated, the competiveness of the Indonesian air transportation industry would be enhanced,” said Wibowo.

Meanwhile, the CEO of Garuda Indonesia, Emirsyah Satar has lent his support to INACA’s call for the lowering or import taxes on aircraft spare parts. Satar said it is unfortunate that aircraft maintenance has to be done abroad. “There (overseas) there is not import duty (on spare parts), while if the work is done in Indonesia import duties apply. This is what was discussed with the Minister of Industry in order that funds don’t run abroad and so that Indonesian airlines can be competitive,” he explained.

The Director General of Industry for High Tech Businesses, Budi Darmadi, said his office would consider the request to reduce or eliminate duties of aircraft spare parts,

He said that those spare parts for which no domestic alternative part exists are those for which a reduction in duty could be considered, but in those cases in which spare parts are produced domestically no reduction in the import tariff can be entertained by the government.


© Bali Discovery Tours. Articles may be quoted and reproduced if attributed to http://www.balidiscovery.com.


 
UBUD WRITERS & READERS FESTIVAL
 
Bali News by Bali Update
Subscribe to the Bali Update
Receive the latest news from Bali by email!



Our [Privacy Statement] explains how we handle the data you are providing.

 
Bali News by Bali Update
Explore the Archive of the Bali Update
Find related articles in our news archive!




or try to use Google Search :

Home · Bali Hotels · Bali Villas · Bali Excursions · Bali Sports · Bali News · Site Map · RSS

Bali News: More News
Weíre Going to Change the World!
Young People Invited to Joining Baliís Global Initiatives Networking Conference at Canggu Community School October 3-5, 2014
(9/20/2014)
Flying High and Fancy with Garuda
Garuda Indonesia Named as Best Passenger Experience in Asia Pacific Region
(9/20/2014)
Chicago Lovers Come Clean in Bali
Bali Police Say Tommy Schaefer and Heather Mack Confess to Roles in Murder of Chicago Socialite Sheila von Weise Mack
(9/20/2014)
Factory Direct
Bali Police Raid Two Narcotics Factories in Denpasar and Buleleng
(9/20/2014)
Cleared for More Landing?
Deputy-Governor of Bali Calls for Extra Runway at Islandís Airport
(9/20/2014)
Longer Hauls; Lower Fares
Indonesia AirAsia Targets Offering Long-Haul Low-Cost Flights to Australia by End of 2014
(9/20/2014)
An Enigma of Non-Arrival
Nobel Laureate V.S. Naipual Removed from Program for 11th Ubud Writers and Readers Festival
(9/20/2014)
Happy Landings Galore
Operator of Baliís New Airport Claims it to be the Most Beautiful in the World
(9/20/2014)
When the Past is Pasta
Uma Cucina at Uma by Como Ubud Celebrates its First Anniversary with Three Italian Culinary Events
(9/20/2014)
They Have to be Carefully Taught
Bali Officials from Badung Regency Allow Illegal Villas in North Kuta to Continue Operations
(9/20/2014)
Is the Under Over?
Plans for Pedestrian Underpass at Ngurah Rai Statue Park Now in Doubt
(9/20/2014)
Merpati at an Impasse
Out of Cash with No Assets Left to Sell,ia Merpati Airlines Beyond Redemption?
(9/20/2014)
All [News]!
 
Tourism and Transport Tourism Agents