High Avtur Prices Prompt Government to Reduce Import Duties on Airline Spare Parts to 0 Percent

JAKARTA, KOMPAS.com – The rise in avtur prices has caused airline operating costs to soar, prompting the government to take strategic mitigation measures to keep domestic flight tickets affordable. One of the main policies is reducing import duties on aircraft spare parts to 0 percent, down from a previous annual figure of around Rp 500 billion.

Coordinating Minister for the Economy, Airlangga Hartarto, said the policy is designed to curb operating costs while enhancing the competitiveness of the national aviation industry.

“To maintain and improve the competitiveness of the aviation industry ecosystem, the government is providing incentives by reducing import duties on aircraft spare parts to 0 percent,” Airlangga stated during a press conference in Jakarta on Monday (6/4/2026).

“Thus, it is hoped that airline operating costs can also be suppressed.”

Airlangga added that the increased competitiveness of the MRO industry is expected to drive domestic aircraft maintenance activities.

“This step has the potential to add economic activity of up to around $700 million per year, support GDP output of up to $1.49 billion, and create around 1,000 direct jobs, with indirect jobs nearly three times that amount,” Airlangga said.

This measure is aimed at curbing ticket price surges amid rising operating costs.

Through this policy combination, the government has allocated fiscal support of Rp 1.3 trillion per month, which will apply for two months.

Currently, domestic avtur prices are recorded at Rp 23,551 per litre, still lower than Thailand’s Rp 29,518 per litre and the Philippines’ Rp 25,326 per litre.

“The increase in avtur prices contributes up to 40 percent to airline operating costs. Therefore, the government is preparing strategic mitigation measures to keep ticket prices affordable for the public. Our main focus is to maintain ticket prices,” Airlangga said.

These steps will be followed up through technical regulations from the Ministry of Finance and the Ministry of Industry, while also forming part of the strategy to ensure the sustainability of the national aviation industry.

According to Airlangga, this policy encourages more efficient, productive, and resilient economic activities, while ensuring the public can still fly at affordable prices.