REPUBLIKA.CO.ID, JAKARTA -- Coordinating Minister of Maritime Affairs, Rizal Ramli, stated that Indonesian aviation fuel prices should be cheaper. If it was compared with international prices, Indonesian aviation fuel was considered as expensive.
"Yes, the comparison is too far. Our prices of aviation fuel is 122 percent more expensive than the international price," he said, Tuesday (15/9).
He explained, expensive aviation fuel prices were due to the value added tax (VAT). The amount of the VAT was 10 percent. According to the existing price calculations, the prices could decrease about 12 percent.
"If Pertamina bought from other parties, it will be so hard. That's the key," he added.
Previously, Minister of Transportation, Ignatius Jonan, complained about the prices of aviation fuel in Indonesia that were expensive by 20 percent, compared to international aviation fuel prices. The high price of aviation fuel affected the cost of aircraft operations conducted by the airline.
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