Indonesian Political, Business & Finance News

Airfares for Lebaran Holiday Travel Remain Expensive, Transport Ministry Responds

| | Source: KOMPAS Translated from Indonesian | Regulation
Airfares for Lebaran Holiday Travel Remain Expensive, Transport Ministry Responds
Image: KOMPAS

Airfares for Lebaran holiday travel in 2026 are considered expensive despite the government providing a stimulus in the form of a 17-18 per cent discount on airfares.

Agustinus Budi H, Director of Air Transport at the Ministry of Transport, stated that the airfares described as expensive by the public are for connecting flight routes, not direct flights.

According to him, connecting flight routes for Lebaran travel are offered by online travel agents (OTAs) because direct flight tickets to several destinations have sold out.

“That’s what eventually creates a somewhat mistaken perception among the public. It seems like the ticket prices are very expensive,” he said.

According to Agustinus, the high airfare prices could also be caused by aircraft cabin class upgrade offers. Passengers who originally wanted to choose economy class end up having no available seats and are directed to take a higher class, such as business class.

Agustinus urged OTAs and airlines to explain the differences between flight routes and aircraft seat availability to passengers.

“We don’t want it to appear that the government has this programme, but with these reports it’s the same thing, it’s completely meaningless,” he said.

Furthermore, Agustinus also emphasised that current airfare prices are regulated based on the Floor Tariff Price (TBB) and Ceiling Tariff Price (TBA) policy.

The TBB/TBA policy is regulated by Ministry of Transport Decision Number KM 106 of 2019 concerning the Ceiling Tariff Price for Economy Class Passengers of Scheduled Domestic Commercial Air Transport.

Airfare prices still heavily depend on the US dollar to rupiah exchange rate, referring to this policy.

In 2019, the US dollar to rupiah exchange rate was Rp 14,000 per US dollar, while jet fuel prices were still Rp 10,000.

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