Indonesian Political, Business & Finance News

Air Ticket Prices Rise, Import Duties on Aircraft Parts Set to Zero

| Source: TEMPO_ID_BISNIS Translated from Indonesian | Economy

Coordinating Minister for the Economy Airlangga Hartarto stated that air ticket prices this month will rise between 9-13%. This increase takes into account the maximum fuel surcharge or additional fuel cost of 38% for jet and propeller aircraft tickets.

However, the government is providing a subsidy on the 11% Value Added Tax (VAT) borne by the government. “Thus, with the government covering it, for users and the public, the rise is only around 9-13%,” he said during a press conference at his office in Jakarta on Monday, 6 April 2026.

The decision to raise the fuel surcharge considers the surge in global crude oil prices to around US$100 per barrel. The price of avtur from PT Pertamina Patra Niaga was Rp 13,656.51 - 15,737.82 per litre in March, while this month it is Rp 22,707.92 - 25,632.39 per litre.

The government has then prepared a budget of Rp 2.6 trillion to cover the VAT for two months. After that, an evaluation will be conducted to determine the continuity of the subsidy.

In addition, Airlangga said, the government is exempting import duties on aircraft parts to 0%. Previously, total import duty receipts last year amounted to Rp 500 billion. “Thus, it is hoped that this can also reduce the operational costs of airlines,” Airlangga stated.

Previously, the Indonesia National Air Carriers Association (INACA) requested an increase in the upper limit tariff and fuel surcharge for jet and propeller aircraft of 15%. The airline association also requested incentives such as government-borne VAT to reach the purchasing power of the public.

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