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Bali's Airport: A Goose that Lays Golden Eggs

Bali's Airport Managers List Financial Contributions to the Island.

(8/17/2009) While Bali’s Ngurah Rai International Airport is the focus of much criticism concerning poor management, over-commercialization and appalling service, the managers of the airport recently presented “the other side of the story” detailing the many financial contributions made by the airport’s operation to the local economy.

PT Angkasa Pura I (PTPAP), the airport’s management company, outlined the impact of the taxes they pay and corporate responsibility programs to the Bali Post.

For the period of 2008 and the first six months of 2009, PT PAP paid the following tax contributions to Bali:

• Public area lighting tax retributions of Rp. 2.109 billion (US$210,000)

• Tax retributions for use of ground water Rp. 1.254 billion (US$125,400).

• Building and Land taxes Rp. 13.13 billion (US$1,313,000).

• Parking tax retributions Rp. 1,032 billion (US$103,200).

• Contributions to the adjoining traditional villages of Kelan and Tuban Rp. 409,352 million (US$40,935).

Payments made to local tax coffers by Bali’s airport earned PT PAP the distinction of being the top tax payer in the Badung regency for 2007 and 2008.

In addition to taxes paid, PT PAP social responsibility contributions and donations to community projects across Bali totaled Rp. 26.231 billion (US$2.6 million) for the 18 months ended June 30, 2009.

Citing the substantial employment and financial contribution made to the local economy and, perhaps, responding to criticisms leveled at the management of the airport over recent months, PT PAP's manager, Heru Legowo, told the Bali Post: "Don’t kill the goose laying golden eggs."