‘Sharing the pain’: As domestic airfares in Indonesia soar, who’s really feeling the pinch?

‘Sharing the pain’: Domestic airfares in Indonesia soar, but who’s really feeling the pinch?

A recent fuel surcharge hike of up to 38 per cent announced by the government has sent airfares rocketing, disrupting travel plans and fuelling backlash online.

JAKARTA: A fuel surcharge hike of up to 38 per cent has sent domestic airfares in Indonesia soaring, with passengers lamenting that prices have shot up by as much as 50 per cent.

This is well above a price hike of 9 per cent to 13 per cent envisaged by the government, with analysts attributing the difference partly due to a delay in airlines getting a tax subsidy from the Prabowo Subianto administration.

One passenger, Jennifer - who asked that her real name not be used as she does not have permission from her employer to speak to the media - said ticket prices last week for flights from Kualanamu International Airport in Deli Serdang, North Sumatra, to Soekarno-Hatta Airport in Tangerang had risen sharply.

“Medan to Jakarta tickets that used to cost around 1.6 million rupiah to 1.9 million rupiah (US$93 to US$111) have jumped to 2.5 million rupiah for economy class, while business class can reach 8 million rupiah to 14 million rupiah,” said the Jakarta-based private sector employee, who frequently travels to Medan for work.

Jennifer showed CNA ticket records dated Apr 9, 2026, where average fares for the Medan to Jakarta route were above 2 million rupiah, with the highest price listed by Citilink - a low cost carrier under state-owned flag carrier Garuda - at 2.5 million rupiah for a 9.45pm departure.

A month earlier, Citilink flights on the same route were priced at around 1.6 million rupiah - indicating an increase of more than 50 per cent.

A check on Google Flights on Wednesday (Apr 15) showed the cheapest Medan to Jakarta fare at 1.8 million rupiah with Citilink, while the most expensive ticket, offered by Garuda Indonesia, had reached 2.8 million rupiah.

Jennifer said she also struggled to secure a ticket, forcing her return to Jakarta - originally scheduled for last Wednesday - to be delayed by two days.

In her experience, such difficulties are typically confined to peak holiday periods or the lead-up to major festivities, even though the Idul Fitri travel season has already passed.

“Outside of peak season, you can usually still buy a ticket on the same day,” she said.

Similar complaints have been echoed by Indonesian netizens across social media platforms, with some opting to cancel or postpone their travel plans altogether.

“I was quite shocked to see airfare prices today. Batam to Jakarta on Batik Air usually costs around 1.5 million rupiah, but now it’s about 2.4 million rupiah,” one Threads user, Dion Haryadi, wrote on Apr 7.

Analysts say fares exceeding the government’s cap are partly due to delays in disbursing promised incentives after jet fuel prices surged following the Iran war.

The situation could dampen passenger demand and further squeeze airline revenues.

Still, observers say the trend is difficult to avoid amid ongoing tensions in the Middle East, which have driven up jet fuel costs. The impact is being felt across the board - by consumers, airlines and the government.

“This is essentially a case of ‘sharing the pain’. The public is feeling the strain, airlines are under pressure, and the government is showing solidarity by giving up part of its revenue to help ease the burden on both carriers and consumers,” aviation analyst Alvin Lie told CNA.

WHY HAVE FARES RISEN BY MORE THAN 13 PER CENT?

On Apr 6, the government decided to raise the fuel surcharge to 38 per cent across all aircraft types, including jets and propeller planes.

“Previously, the surcharge was capped at 10 per cent for jets and 25 per cent for propeller aircraft. Now, it has been standardised at 38 per cent,” Coordinating Minister for Economic Affairs Airlangga Hartarto said at a press conference.

The move came in response to mounting pressure from the Indonesian National Air Carriers Association (INACA), which had called for a 15 per cent increase in the fuel surcharge.

INACA also asked for a 15 per cent increase to the government’s upper limit on domestic airfares. In Indonesia, prices of domestic flights have distance-based price ceilings set by the government.

A fuel surcharge is an additional fee imposed by airlines on top of base fares to offset rising jet fuel (avtur) costs, with the rate set by the Indonesian government through a formula determined by the Transportation Ministry.

Jet fuel accounts for roughly 40 per cent of total flight operating costs.

The push came after state energy firm Pertamina raised jet fuel prices for the Apr 1 to Apr 30 period, with average increases of around 70 per cent for domestic routes and 80 per cent for international routes, varying across airports.

Data from Pertamina shows that domestic jet fuel prices at Soekarno-Hatta Airport stood at 13,656.51 rupiah per litre in March, before jumping to 23,551.08 rupiah per litre in April - a surge of more than 70 per cent.

To cushion the impact of higher fuel surcharges on ticket prices, the government has agreed to cover the 11 per cent value-added tax (VAT) on economy class tickets for two months. The subsidy, known as VAT borne by the government (PPN DTP), is valued at around 1.3 trillion rupiah per month.

In addition, import duties on aircraft spare parts have been cut to zero per cent. With these measures in place, Airlangga said the government expects “ticket price increases to remain within the 9 per cent to 13 per cent range”.

While the government approved the increase in the fuel surcharge, it did not grant INACA’s request to raise the fare ceiling, citing the need to preserve consumers’ purchasing power.

However, fares on the ground have already exceeded the government’s projected ceiling.

NACA secretary-general Bayu Sutanto said fares have risen beyond 13 per cent largely because the VAT subsidy has yet to be disbursed by the finance ministry.

“So far, the