Air Ticket Prices Rise by up to 13 Percent Due to Soaring Jet Fuel Costs

Domestic air ticket prices have risen again in recent times. The government states that this increase is unavoidable, triggered by the surge in global avtur prices, the largest component in airline operational costs. Nevertheless, the government emphasises that fares are being kept in check to avoid burdening the public. The Ministry of Transportation has granted permission to airlines to raise the fuel surcharge, or additional fuel cost, by up to 38 percent. Transport Minister Dudy Purwagandhi explained that this adjustment responds to the spike in avtur prices due to global geopolitical dynamics, including conflicts in the Middle East. According to Dudy, this policy is not a unilateral decision but based on input from industry stakeholders. With avtur costs contributing around 40 percent to total operational expenses, the adjustment is deemed essential to sustain national aviation operations. Fluctuating global conditions make price adjustments unavoidable. Although operational costs are rising, the government assures that domestic air ticket price increases remain controlled. Coordinating Minister for the Economy, Airlangga Hartarto, stated that the government is limiting fare hikes to between 9 and 13 percent. To ease the burden on the public, the government is providing Government-Borne VAT (PPN DTP) of 11 percent for economy class domestic air tickets. This incentive requires a budget of around Rp 1.3 trillion per month, or Rp 2.6 trillion if implemented for two months. “The aim is to keep ticket prices affordable despite global pressures on avtur prices,” said Airlangga.