Aviation observer Alvin Lie assessed that the published price of aviation fuel in Indonesia is still competitive so far. This is because the price of aviation fuel owned by Pertamina is still equal to or even lower than the price of aviation fuel per liter in countries with similar geographical landscapes.
“The published price of aviation fuel in Indonesia can be said to be quite competitive. The competitive value of Pertamina’s published price of aviation fuel is also equal and/or lower when compared to the published price per liter in countries with similar geographical landscapes,” said Alvin when contacted, Sunday (8/9).
He said this in response to a statement by the CEO of Capital A Berhad, the parent company of AirAsia airline, Tony Fernandes, who revealed that the cost of aircraft fuel in Indonesia is around 28% more expensive compared to countries in the Southeast Asian region.
“Fuel prices in Indonesia are the highest in ASEAN, around 28%,” Tony said at a press conference.
However, according to Alvin, the statement is baseless. For example, in the period of 1-30 September 2024, the published price of avtur distributed by Pertamina, through its subsidiary Pertamina Patra Niaga, at Soekarno Hatta airport was sold for IDR 13,211 per liter. Meanwhile, the published price of avtur distributed by Shell in Singapore was IDR 23,212 per liter.
The determination of Pertamina’s Avtur price refers to the applicable provisions, namely ESDM Ministerial Decree No. 17 K / 10 / MEM / 2019 concerning the Basic Price Formula in Calculating the Retail Selling Price of General Types of Avtur Fuel Distributed Through Aircraft Filling Depots.
Also read: Ministry of Transportation Says Cause of Expensive Airline Tickets is Avtur
“Currently, the regulation of the aviation fuel trading business is also open in accordance with the regulations of the Ministry of Energy and Mineral Resources. And Pertamina is the most ready to run the aviation fuel trading business in accordance with the rules and regulations set,” explained Alvin, who currently serves as a Member of the Indonesian Ombudsman.
Alvin also referred to the results of a survey by the Indonesian Aviation Service Users Association (Apjapi) some time ago. From the survey results, 77% of 7,414 airline passengers surveyed stated that current airline ticket prices are considered reasonable.
“A survey conducted by Apjapi in early February 2024 showed that 77% of domestic flight service users considered our ticket prices to be still reasonable,” he said.
Also read: Minister of Tourism and Creative Economy Continues Efforts to Reduce Domestic Airfare Prices
The figure of 77% is a combination of respondents’ assessments that said the price of plane tickets was reasonable (59.8%), the price of plane tickets was cheap (7%), very cheap (0.2%) and respondents who admitted they did not know whether plane tickets were expensive (10%).
Meanwhile, 21.5% of respondents considered plane tickets expensive and 1.5% of respondents considered plane tickets very expensive.
On a separate occasion, the spokesperson for the Ministry of Transportation (Kemenhub) Adita Irawati admitted that the price of plane tickets is expensive because the price of avtur is also high. She explained that the price of avtur takes up to 40% of the operational cost component of the plane.
“From our study and implementation in the field, it is true. This is a factor that affects the price of plane tickets,” said Adita. (Fal/Z-11)
#Avtur #Prices #Considered #Competitive #Government
Disadvantages of sustainable aviation fuel
Table of Contents
Sustainable Aviation Fuel in Indonesia: A Competitive and EnvironmentallyFriendly Alternative
The aviation industry is one of the largest contributors to greenhouse gas emissions, and Indonesia is no exception. With the growing demand for air travel, the need for sustainable aviation fuel (SAF) has become increasingly important. In recent years, Indonesia has taken significant steps towards developing and promoting the use of SAF.
Competitive Pricing
According to Alvin Lie, an aviation observer, the published price of aviation fuel in Indonesia is still competitive compared to other countries with similar geographical landscapes. This is despite claims by Tony Fernandes, CEO of Capital A Berhad, that the cost of aircraft fuel in Indonesia is around 28% more expensive compared to countries in the Southeast Asian region. In fact, a comparison of prices shows that Pertamina’s avtur price is lower than Shell’s avtur price in Singapore.
Government Support
The Indonesian government has expressed its commitment to developing SAF. By June 31, 2024, the government hopes to finalize a national roadmap and action plan for the industrial development of SAF [[1]]. This move is expected to encourage the use of SAF and reduce Indonesia’s carbon footprint.
Environmental Benefits
The use of SAF made from used cooking oil, for example, could reduce CO2 emissions by up to 84% compared to conventional jet fuel [[2]]. This would have a significant impact on the environment and help Indonesia achieve its sustainability goals.
Industry Developments
Recent developments in the industry have seen companies such as NEXTCHEM (MAIRE) being awarded a feasibility study for a SAF project in Indonesia [[3]]. This project, which will utilize proprietary NX PTU and NX SAF bio-technologies, is a significant step forward in the development of SAF in the country.
Conclusion
the development and use of sustainable aviation fuel in Indonesia is a crucial step towards reducing the country’s carbon footprint and achieving sustainability goals. With competitive pricing, government support, and industry developments, Indonesia is well on its way to becoming a leader in SAF production and use. As the demand for air travel continues to grow, it is essential that Indonesia and the aviation industry as a whole prioritize the use of sustainable aviation fuel.
Keywords: Sustainable Aviation Fuel, Indonesia, Aviation Industry, Environmental Sustainability, Competitive Pricing, Government Support, Industry Developments.
What are the key initiatives taken by the Indonesian government to promote sustainable aviation fuel (SAF) as an environmentally friendly alternative?
Sustainable Aviation Fuel in Indonesia: A Competitive and Environmentally Friendly Alternative
The aviation industry is one of the largest contributors to greenhouse gas emissions, and Indonesia is no exception. With the growing demand for air travel, the need for sustainable aviation fuel (SAF) has become increasingly important. In recent years, Indonesia has taken significant steps towards developing and promoting the use of SAF.
Competitive Pricing
According to Alvin Lie, an aviation observer, the published price of aviation fuel in Indonesia is still competitive compared to other countries with similar geographical landscapes. This is despite claims by Tony Fernandes, CEO of Capital A Berhad
