Jakarta. Indonesia’s airline industry is urging the government to introduce a zero-tax policy on imported aircraft spare parts this year, arguing that the measure would help lower operating costs and strengthen the competitiveness of the country’s aviation sector.

The proposal comes as airlines across the region continue to face pressure from maintenance costs, supply-chain challenges, and currency fluctuations that affect the price of imported aircraft components and equipment.

Denon Prawiraatmadja, chairman of the Indonesian National Air Carriers Association (INACA), said the proposed tax exemption has become one of the industry’s top priorities because of its direct impact on airline operating expenses.

“We hope that a zero-tax policy on imported spare parts can finally be implemented this year,” Denon said in Jakarta on Wednesday.

According to Denon, improving cost efficiency is essential not only for airline profitability but also for strengthening national connectivity across the archipelago.

“Connectivity is important, and efficient operating costs are equally important,” he said.

INACA has continued to lobby for tax incentives on aircraft spare parts imports, arguing that lower costs would give airlines greater flexibility to improve service quality and strengthen their long-term financial performance.

The association is also advocating a broader set of measures to support the aviation industry, including fiscal policies aimed at improving the operating environment for domestic carriers.

Denon said INACA has been pushing for tax relief on imported aircraft components for more than a decade in collaboration with industry stakeholders.

“We are currently proposing several tax exemptions related to spare parts. This has been a priority issue for INACA for more than 10 years,” he said.

He added that efforts to enhance the competitiveness of Indonesia’s aviation sector must be accompanied by policies that reduce operational burdens on airlines.

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