Indonesian Political, Business & Finance News

Airplane Ticket Prices to Rise by Maximum 13 Percent, Government Prepares Rp 2.6 Trillion Subsidy

| | Source: REPUBLIKA Translated from Indonesian | Economy
Airplane Ticket Prices to Rise by Maximum 13 Percent, Government Prepares Rp 2.6 Trillion Subsidy
Image: REPUBLIKA

The government has announced an increase in the fuel surcharge to 38 percent from the previous 10 percent for jet aircraft and 25 percent for propeller aircraft, as a result of rising avtur prices amid the escalation of war in the Middle East. In line with this cost increase, the government is ensuring relaxations so that the rise in airplane ticket prices does not exceed 13 percent.

“To keep the increase in domestic ticket prices affordable for the public, the government is limiting the ticket price rise to around 9—13 percent,” said Coordinating Minister for the Economy Airlangga Hartarto during a press conference on transportation and fuel policies at the Coordinating Ministry for the Economy office in Jakarta on Monday (6/4/2026).

Airlangga explained that several steps are being taken by the government to keep airplane ticket prices affordable, including relaxations on the Value-Added Tax Borne by the Government (PPN DTP).

“The first step is the 11 percent PPN borne by the government for scheduled commercial air transport tickets in the domestic economy class. With this calculation, the subsidy amount provided by the government is around Rp 1.3 trillion per month. So, if we prepare for two months, it will be Rp 2.6 trillion to ensure the ticket price increase is a maximum of 9—13 percent,” he clarified.

Airlangga stated that the fuel surcharge and PPN DTP policies are being implemented in accordance with the previously established programme for two months. Therefore, he assured that evaluations and monitoring of geopolitical dynamics and the war in the Middle East will continue.

“Pertamina is also given relaxations on the payment system, the payment mechanism with airlines under business-to-business terms and conditions,” Airlangga added.

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