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Indonesia Limits Ticket Price Increases to 9–13% as Jet Fuel Costs Climb, Offers Tax Exemptions for Economy Passengers

1 week ago | Industrial Transformation


Jakarta, INTI - The government has confirmed that domestic airfare increases will be maintained within the range of 9–13 percent in response to rising jet fuel prices.

Coordinating Minister for Economic Affairs Airlangga Hartarto stated that the primary measure involves providing a government-borne value-added tax incentive (VAT DTP) of 11 percent, specifically for economy-class tickets on domestic routes. This policy is intended to ensure that the burden of fare increases is not fully passed on to passengers.

Additional Support to Maintain Affordability 

In addition, the government is preparing further support measures, including adjustments to fuel surcharges and operational cost incentives for airlines, in order to keep ticket prices affordable despite ongoing fuel cost pressures.

This policy aims to maintain public mobility and ensure stability in the air transportation sector, particularly for domestic travel in the coming months, while balancing industry sustainability with consumer protection.

Furthermore, the government will continue to monitor global energy price trends and coordinate with airlines and industry stakeholders to evaluate the effectiveness of these measures, ensuring that any future adjustments remain aligned with economic conditions and public needs.

Conclusion 

The government’s intervention reflects a balanced approach to managing rising operational costs while protecting consumers, ensuring that the aviation sector remains stable without placing excessive financial pressure on domestic travelers.

Read more: Indonesia’s Manufacturing Holds Strong Amid Global Pressures, PMI Remains in Expansion

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