The Government of Indonesia has set a maximum increase of 13% for domestic airline ticket prices, following a rise in aviation fuel costs.
The policy allows airlines to raise fares within a range of 9 to 13%.
Coordinating Minister for Economic Affairs Airlangga Hartarto said the government has introduced several measures to keep fare increases within the set range while maintaining industry stability.
“So, to keep domestic airfare increases within the 9–13% range, the first step is to increase the 11% VAT DTP for scheduled domestic airfare, economy class, and the subsidy amount,” he said on Monday (6 April 2026), as quoted by Detiknews.
He added that the Government-Borne Value Added Tax (PPN DTP) of 11 per cent applies to domestic commercial flights, including scheduled economy class services.
Fuel surcharge adjusted and subsidies allocated
The government has also revised the fuel surcharge policy. The ceiling has been set at 38 per cent for both jet and propeller aircraft. This marks an increase from the previous limits of 10 per cent for jet aircraft and 25 per cent for propeller aircraft.
In addition, the government has allocated financial support to offset rising operational costs. Airlangga said the government will provide IDR 1.3 trillion per month over a two-month period.
This brings the total subsidy allocation to approximately IDR 2.6 trillion.
Alongside short-term measures, the government is preparing structural policies to support the aviation sector.
These include a zero per cent import duty incentive for aircraft spare parts. The policy aims to reduce airline operating costs and maintain competitiveness.
The government stated that these measures are intended to balance the sustainability of the aviation industry with ticket affordability for passengers amid global cost pressures.
Airlines adjust operations in response to cost pressures.
Indonesia AirAsia has adjusted its flight schedules on several domestic and international routes in response to rising costs. The airline also issued an apology to passengers affected by the changes.
Acting President Director Capt. Achmad Sadikin said the adjustments were necessary to maintain operations.
“This adjustment was made as part of an effort to maintain service continuity amidst ongoing operational dynamics,” he said in an official statement on Monday (6 April 2026), as quoted by Kompas.com.
He said the aviation sector is under pressure due to increasing fuel prices and other operational costs.
Although the fuel surcharge has been raised to around 38 per cent, he noted that the measure does not fully offset the increase in costs.
Airlines are therefore making gradual adjustments, including rationalising capacity and reviewing routes with limited margins, to maintain service stability.
