Indonesian Political, Business & Finance News

Flight Tickets Expensive as Minister Highlights Two Key Factors

| Source: DETIK Translated from Indonesian | Regulation
Flight Tickets Expensive as Minister Highlights Two Key Factors
Image: DETIK

Transport Minister Dudy Purwagandhi has addressed plans to revise upper and lower fare limits, which have contributed to expensive aircraft tickets. Purwagandhi explained that the dollar exchange rate and aviation fuel prices have changed significantly since 2019.

This was disclosed during a meeting discussing infrastructure readiness and transport services for the 2026 Lebaran holiday exodus, held with the House of Representatives Commission V at Senayan in Jakarta on Wednesday, 11 March 2026. Purwagandhi explained that upper and lower fare limits were determined in 2019.

“Regarding the upper and lower fare limits, the regulations established by the Ministry of Transport were indeed from 2019. However, I would like to share with you all that in 2019, the upper and lower fare limits were determined based on an exchange rate assumption of Rp 14,165 and aviation fuel prices of Rp 10,845,” Purwagandhi said.

Purwagandhi stated that any revision of these fares would need to account for current exchange rates and aviation fuel prices.

“If we want to revise the rates based on current conditions, we must consider that the current exchange rate is Rp 16,779, and current aviation fuel prices are Rp 15,432. This is the data we have,” he added.

Commission V Chair Lasarus then pressed on the issue of price increases. Purwagandhi indicated that fare determination would naturally adjust to reflect dollar exchange rates and aviation fuel prices.

“So prices will go up, Minister?” Lasarus asked.

“I did not say that, as you have stated, we must maintain balance,” Purwagandhi replied.

“Perhaps we should meet to discuss this, as the 2019 assumptions turned out to be lower than current conditions,” he continued.

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