Indonesia to allow airlines to raise fares by up to 13%, minister says
- By Reuters -
- Apr 07, 2026
Indonesia will allow airlines to raise ticket prices by increasing the fuel surcharge, while waiving some airline-related taxes, senior economic minister Airlangga Hartarto told reporters on Monday.
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- Airlines are now allowed to raise ticket fares after the government said it would allow a fuel surcharge hike of up to 38% of the upper airfare limit, but it will also introduce tax exemptions and other policies in a bid to control fares amid the ongoing war in the Middle East.
- “The government has prepared mitigation measures so that ticket prices remain affordable to people,” Airlangga said.
- The measures include exemptions for value-added taxes for airlines and import duties for aircraft spare parts.
- The government will allow airfare hikes in the range of 9%-13%.
- Airlines were asking for a 50% fuel surcharge, said Indonesia’s Transport Minister Dudy Purwagandhi, adding that the government views 38% as the ideal figure to maintain purchasing power and allow the airlines to avoid heavy losses.
- Airlangga said the policy would be in effect for the next two months and is subject to further evaluations depending on the developments on the war in the Middle East.