Government Prepares Rp 2.6 Trillion Subsidy for Domestic Flight Tickets

The government is providing a subsidy of Rp 2.6 trillion for domestic flight tickets this month and May 2026. Coordinating Minister for the Economy Airlangga Hartarto stated that the subsidy is in response to the increase in avtur prices due to the surge in global crude oil prices. “The subsidy 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,” he said during a press conference at his office in Jakarta on Monday, 6 April 2026. Airlangga explained that the subsidy is to cover the Value Added Tax (VAT) on flight tickets, which is imposed at 11%. This tax applies to scheduled commercial air transport tickets for economy class within the country. The subsidy is intended to maintain public purchasing power and ensure the continuity of the aviation industry. Thus, domestic flight ticket prices will not exceed 15% due to the fuel surcharge rate or additional fuel costs that have risen to 38%, as well as the increase in aircraft spare parts procurement prices. “Therefore, for end-users, for the public, the increase is only around 9-13%,” he added. Previously, the Indonesia National Air Carriers Association (INACA) requested a 15% increase in the upper tariff limit and a 15% fuel surcharge each for jet and propeller aircraft, as well as government-covered VAT incentives. This increase also considers the weakening rupiah exchange rate against the US dollar. The current avtur price has risen by more than 60% at all airports in Indonesia. In March, avtur was priced at Rp 13,656.51 - 15,737.82 per litre, whereas this month it has become Rp 22,707.92 - 25,632.39 per litre.