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Domestic Passenger Service Charge Hiked 33%

Departing Domestic Air Passengers in Bali to Pay Rp. 40,000 Starting December 1, 2010.

(11/15/2010) The tax charged passengers departing on domestic flights from Bali's Ngurah Rai Airport will increased by 33% effective December 1, 2010.

Heru Legowo, the General Manager of PT Angkasa Pura I, the State-owned company that manages Bali's airport, told NusaBali that the domestic airport service charge will increase from Rp. 30,000 (US$3.26) to Rp. 40,000 (US$4.40).

Heru defended the increase, saying the hike had been discussed in planning sessions since 2005 awaiting the agreement of Indonesia's Minister of Transportation.

Explained Legowo: "In the past several years PT Angkasa Pura has undertaken repairs of the airport's facilities, including the terminal, landing strips, navigational equipment and a number of other aspects requiring substantial expenditures. Because of this, the PJP2U (airport service charge) needs to be adjusted and more facilities added, such as the recent increase from 400 luggage trolleys to 1,000."

Ball's airport collects approximately Rp. 1.2 billion (US$130,500) every day in domestic and international service charges and other fees while handling between 6,000-7,000 passengers.

In the recent past, Bali's governor has unsuccessfully fought for a share of the passenger service charge to be paid to the provincial government.

Similar passenger service charge increases are also being applied at major airports across Indonesia on December 1, 2010.