PPN DTP Can Hold Back Domestic Airfare Price Hikes of 9-13 Percent

Coordinating Minister for the Economy Airlangga Hartarto stated that the adjustment to avtur prices is being implemented through the application of government-borne VAT (DTP) at 11 percent for two months. According to him, this policy can hold back the increase in domestic airfare prices to around 9–13 percent.

“The policy related to energy and transportation, one of which is the adjustment of avtur prices,” said Airlangga in a written statement on Thursday, 9 April 2026.

He also mentioned the impact of the avtur price increase on hajj costs, which will be covered by the government so as not to add to the expenses for around 220,000 pilgrims. A budget of Rp 1.77 trillion is said to be borne by the State Revenue and Expenditure Budget (APBN).

Avtur prices at various airports have surged due to geopolitical conflicts in the Middle East. Based on data from PT Pertamina Patra Niaga, avtur prices rose from the range of Rp 13,656.51–Rp 15,737.82 per litre in March 2026 to Rp 22,707.92–Rp 25,632.39 per litre in April 2026.

“The price of Rp 22,707.92 per litre at Hang Nadim Airport, Batam,” quoted from the avtur price document on Pertamina’s official website, Wednesday, 1 April 2026.

The Indonesia National Air Carriers Association (INACA) previously requested that the government raise the upper fare limits and fuel surcharge by 15 percent due to the surge in global oil prices affecting avtur.

This is also due to the weakening rupiah exchange rate since the upper fare limits were set in 2019. The association also requested that the government provide stimulus for the continuity of airline operations.