Aviation Fuel Prices Soar, Government Subsidises Rp2.6 Trillion for Airline Tickets

The Indonesian government has announced a subsidy for airline tickets worth Rp2.6 trillion over the next two months as a measure to dampen the effects of the global rise in avtur prices, resulting from the war between the United States and Israel with Iran in the Middle East. Coordinating Minister for the Economy Airlangga Hartarto stated that the subsidy is in the form of government-borne value-added tax incentives (PPN DTP) of 11% per month, valued at around Rp1.3 trillion per month for two months. “So we are preparing for 2 months, which makes this Rp2.6 trillion,” said Airlangga during a press conference at his office in Jakarta on Monday (6/4/2026). Airlangga said that the amount of this subsidy will suppress the surge in airline ticket prices, which were initially estimated to rise by 28% for jet aircraft types and 38% for propeller types. With this airline ticket subsidy, he estimates the increase will be only 9-13%. “This is so that ticket prices rise by a maximum of 9-13%,” explained Airlangga. He emphasised that this fuel surcharge and PPN DTP policy will be implemented in accordance with the package response to global crude oil price fluctuations issued for the next two-month period.