Plane Ticket Prices Rise, Airlangga Blames Aviation Fuel

Coordinating Minister for Economic Affairs, Airlangga Hartarto, stated that the rise in avtur prices has impacted aviation sector operations in Indonesia. Consequently, the government is opening opportunities for airlines to increase plane ticket prices by around 9-13%, as compensation for the global avtur price increase. “The avtur component itself contributes up to 40% of total aircraft operating costs, so this increase significantly affects the operations of national airlines,” said Airlangga during a press conference at the Coordinating Ministry for Economic Affairs office in Jakarta on Monday, 6 April 2026. He acknowledged that the avtur price rise is inseparable from global geopolitical escalations, impacting various countries worldwide. Airlangga noted that in the Philippines, avtur prices have reached Rp 25,326 per litre, and in Thailand up to Rp 29,518 per litre. In Indonesia, avtur prices at Soekarno-Hatta Airport have reached Rp 23,551 per litre, thus affecting national airline operations. Moreover, avtur is a non-subsidised fuel type, so its price follows global market dynamics and developments. However, if avtur prices are not adjusted, foreign airlines could potentially exploit the price differences. “Of course, if we do not adjust, other airlines could take advantage of those price differences,” he said. Previously, Airlangga had stated that for the 9-13% increase in domestic plane ticket prices, the government has prepared several measures to ensure the price rise remains within that range. “The first step is the 11% DTP VAT (Value Added Tax borne by the Government) for domestic scheduled commercial air transport tickets, economy class,” said Airlangga. He added that this policy, planned to apply for two months, has a budget allocation of Rp 2.6 trillion or Rp 1.3 trillion per month. “So that the ticket prices (for flights) can be a maximum of 9-13%,” he said.