{
    "success": true,
    "data": {
        "id": 1634803,
        "msgid": "ministry-of-transportation-to-review-proposal-for-15-increase-in-upper-limit-of-domestic-flight-ticket-prices-1774446685",
        "date": "2026-03-25 19:55:00",
        "title": "Ministry of Transportation to Review Proposal for 15% Increase in Upper Limit of Domestic Flight Ticket Prices",
        "author": "Indriyani Astuti",
        "source": "MEDIA_INDONESIA",
        "tags": "",
        "topic": "Regulation",
        "summary": "The Indonesian Ministry of Transportation is evaluating a request from the Indonesia National Air Carriers Association (INACA) to raise the upper limit of domestic flight ticket prices by 15%, alongside adjustments to fuel surcharges, amid rising operational costs due to global geopolitical tensions, fluctuating exchange rates, and higher aviation fuel prices. The government is balancing the needs of the aviation industry with consumer affordability and safety, while considering temporary stimulus measures such as deferred taxes and airport fees for the 2026 Lebaran period. This move aims to ensure the sustainability of national air connectivity without compromising service quality.",
        "content": "<p>The Ministry of Transportation (Kemenhub) will review the request\nfrom the Indonesia National Air Carriers Association (INACA) regarding\nan increase in the upper limit tariff (TBA) for domestic flight tickets\nby up to 15 per cent.<\/p>\n<p>Director General of Air Transportation at Kemenhub, Lukman F. Laisa,\nacknowledged the challenges facing the national aviation industry as a\nresult of global geopolitical developments that have impacted the rise\nin aviation fuel (avtur) prices, exchange rate fluctuations, and\nincreased operational costs for airlines.<\/p>\n<p>\u201cIn relation to the request for adjustment of fuel surcharges and\nUpper Limit Tariffs (TBA) submitted by INACA, in principle, the\nGovernment is considering various aspects,\u201d he stated in an official\nrelease on Wednesday (25\/3).<\/p>\n<p>He explained that the aspects under consideration include the\neconomic condition of airlines, public purchasing power, the\nsustainability of the aviation industry, as well as safety, security,\nand service aspects.<\/p>\n<p>The Directorate General of Air Transportation has been continuously\ncoordinating with all stakeholders, including airlines, airport\noperators, avtur providers, and other related agencies, to monitor\ndevelopments in avtur prices and their impact on flight operations.<\/p>\n<p>Regarding the proposed stimulus policy, Laisa said the government\nremains attentive to fiscal conditions and the broader public interest.\nThe government emphasised that every policy taken will prioritise a\nbalance between the sustainability of the aviation industry and consumer\nprotection.<\/p>\n<p>\u201cThus, air transport services will remain maintained in terms of\nsafety, security, affordability, and national connectivity,\u201d he\nadded.<\/p>\n<p>Separately, INACA Secretary General Bayu Sutanto submitted a proposal\nfor a 15 per cent increase in fuel surcharges on top of those already\nset through Ministry Regulation No.\u00a07 of 2023 dated 10 January 2023.\nAdditionally, INACA proposed a 15 per cent increase in the Upper Limit\nTariff (TBA) for domestic flight ticket prices for both jet and\npropeller aircraft from the limits set through Ministry Regulation\nNo.\u00a0106 of 2019.<\/p>\n<p>In addition to adjustments to fuel surcharge and TBA amounts, INACA\nalso proposed several temporary stimulus policies, such as for the 2026\nLebaran period. These proposals include deferral of VAT on avtur and\ndomestic tickets, relief on airport fees or PJP4U, and rescheduling\npolicies for outstanding payments of airport and navigation fees.<\/p>\n<p>\u201cThis request is submitted by INACA to anticipate the avtur price\nadjustment from Pertamina effective 1 April 2026,\u201d Bayu explained.<\/p>\n<p>According to him, these steps are also intended to ensure business\nsustainability, safety assurance, and the availability of national air\ntransport connectivity while maintaining high safety standards.<\/p>\n<p>He added that the TBA increase proposal is based on the current\naviation industry conditions affected by geopolitical conflicts between\nthe US-Israel and Iran, which have created unfavourable international\neconomic conditions. The impacts include rising global oil prices and\nthe weakening of the rupiah against the US dollar, both of which\nsignificantly contribute to increased operational costs for national\nairlines.<\/p>",
        "url": "https:\/\/jawawa.id\/newsitem\/ministry-of-transportation-to-review-proposal-for-15-increase-in-upper-limit-of-domestic-flight-ticket-prices-1774446685",
        "image": ""
    },
    "sponsor": "Okusi Associates",
    "sponsor_url": "https:\/\/okusiassociates.com"
}