Indonesian Political, Business & Finance News

Government Caps Airfare Increases at Maximum 13 Percent

| | Source: KOMPAS Translated from Indonesian | Regulation
Government Caps Airfare Increases at Maximum 13 Percent
Image: KOMPAS

JAKARTA, KOMPAS.com - Transport Minister Dudy Purwagandhi has emphasised that airlines must not raise airfare prices beyond the government-set limit of a maximum of 13 percent.

The government has established a range for tariff increases between 9 percent and 13 percent. This figure has been calculated taking into account various components of the airlines’ operational costs.

“Well, as announced yesterday, we hope the range for the increase is 9–13 percent. It must not exceed that,” Dudy said in Jakarta on Thursday night (9/4/2026).

“Why? It’s government policy; VAT has already been covered. Then, we have allowed the fuel surcharge to rise by up to 38 percent. Spare parts are exempted,” he added.

He assessed that with such support, airlines have no reason to increase tariffs beyond the stipulated limit.

“So, the aviation industry or airlines should have no excuse to add further increases. We have calculated that the engine increase is only 9–13 percent,” he stressed.

This policy aims to maintain a balance between the sustainability of the aviation industry and the purchasing power of the public. The government is also continuing to monitor implementation in the field, including during the Eid transportation period.

“Alhamdulillah, during last Eid, I hardly heard any more complaints about ticket conditions,” he said.

Dudy opened the possibility of lowering ticket prices if aviation fuel prices also decrease. That component is a major factor in determining the fuel surcharge.

“If prices are to decrease, we will certainly return them. Because the fuel surcharge is one of the components based on aviation fuel prices,” he explained.

Dudy emphasised that the policy is an official decision that has been approved by the President and is just awaiting administrative finalisation.

“We are quite optimistic… hopefully, this can be resolved in the next two months,” Dudy asserted.

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