Garuda Indonesia Prepares to Raise Ticket Prices, Following Government Policy of 9-13%

Garuda Indonesia airline plans to adjust flight ticket prices following the government’s policy permitting a 9-13 per cent increase in domestic airfares. According to detikFinance, the policy is contained in Ministerial Decree No. 83 of 2026, which regulates the adjustment of additional fuel cost components (fuel surcharge) for domestic economy class passengers. Additionally, the government has prepared a stimulus in the form of an 11 per cent Value Added Tax (VAT) borne by the government (DTP). The state-owned airline stated that it will make ticket price adjustments after the policy takes effect. Garuda Indonesia’s President Director, Glenny Kairupan, promised that the price adjustments will be carried out proportionally and in a measured manner. “Garuda Indonesia will carry out ticket price adjustments proportionally and in a measured manner while still prioritising principles of prudence, transparency, and compliance with regulatory provisions,” Glenny said in a written statement on Wednesday (8/4/2026). He also stated that evaluations will be conducted periodically in line with the dynamic movement of avtur prices. Garuda has also prepared mitigation measures through the review of optimising flight frequencies and schedules on several routes, as part of efforts to maintain capacity productivity and operational continuity. “This policy is a strategic step in maintaining a balance between airline operational sustainability and the accessibility of air transport services for the public, while supporting the stability of the national aviation industry ecosystem,” Glenny explained. Moving forward, Garuda Indonesia will continue to monitor geopolitical developments and global aviation industry dynamics, as well as ensure that every adjustment step is carried out adaptively to maintain a balance between business sustainability and service accessibility for all levels of society. Previously, the government has issued a policy on increasing additional fuel costs or fuel surcharge as one of the components forming aircraft ticket prices. The fuel surcharge has risen by 38 per cent for jet aircraft and propeller-engine aircraft. To keep ticket prices affordable, the government has also issued a policy in the form of Government-Borne Value Added Tax (PPN DTP) of 11 per cent. This policy applies to domestic scheduled commercial air transport tickets in economy class. The government has also provided 0 per cent import duties on aircraft parts. This policy is estimated to strengthen the competitiveness of the maintenance, repair, and overhaul (MRO) industry.