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Domestic Airport Service Charge to Increase

33% Increase in Bali's Airport Service Charge - Effective August 15, 2005.

(7/30/2005) The airport service charge paid by all departing domestic passengers will increase from Rp. 20,000 to Rp. 30,000 (approximately US$3.00), effective August 15, 2005.

The planned increase, authorized by Ministerial decree, was announced by the Manager of PT Angkasa Pura I, Adi Ngadiri, on July 28, 2005, according to the Indonesian-language Bali Post.

Ngadiri cautioned that the August 15th effective date remained a target while waiting for a formal written authorization to introduce the higher charge from the Directors of Angkasa Pura I - the management company for major airports across the Nation.

Ngadiri promised that the additional funds resulting from the increased service charge would be used to upgrade conditions at the airport, including the cleanliness of public toilets and the training of airport staff. The man in charge of Bali’s airport also told the press that Bali's airport handles an average 3,000 – 3,500 domestic passengers each day and that the increased service charge at the present level of passenger through-flow will still fall short of the total funds extimated to be needed to sustain the services and facilities provided to the public by the airport. He estimated that due to escalating energy costs a service charge of Rp. 50,000 (approximately US$5.10) would, in fact, be needed to hit an operation break-even point.

The airport service charge for international flights of Rp. 100,000 per person (approximately US$10.20) remains unchanged.