Indonesia's government has capped domestic flight ticket price increases at 9 to 13 percent amid rising jet fuel costs. The measure provides government-borne VAT relief for economy class tickets. It applies for 60 days to protect consumer purchasing power.
Jakarta – Indonesia's government is curbing domestic flight ticket price surges triggered by higher avtur costs. Haryo Limanseto, spokesperson for the Coordinating Ministry for the Economy, said, "The government continues to protect the public from the impact of global energy price rises, including jet fuel or avtur spikes that drive up ticket prices."
Under Finance Minister Regulation No. 24 of 2026, the government offers Value-Added Tax (VAT) borne by the state for domestic economy class tickets. VAT on base fares and fuel surcharges is covered by the state, easing the burden on passengers despite rising airline costs. Haryo added, "Through this policy, VAT on base fares and fuel surcharges is borne by the government, allowing ticket prices paid by the public to be contained."
The relief lasts 60 days from issuance and excludes non-economy classes. It follows a prior hike in fuel surcharges to 38 percent via Transport Minister Decree No. 83 of 2026 for jet and propeller aircraft. Fuel accounts for about 40 percent of airlines' operating costs.
The policy balances airline sustainability with affordable air travel access for the public.
