Indonesia to allow airlines to raise ticket prices amid fuel crisis

Indonesia will permit airlines to increase ticket prices through higher fuel surcharges while granting exemptions from certain aviation taxes, senior economic minister Airlangga Hartarto told reporters.

Airlines can raise fares after the government approved a fuel surcharge of up to 38% of the maximum ticket price, Reuters reports.

Tax relief and other measures are also being introduced to stabilise prices amid the ongoing Middle East conflict. “The government has prepared mitigation measures so ​that ticket prices remain affordable to people,” Airlangga said.

Measures include exemptions from value-added tax and import duties on aircraft parts. Airlines will be allowed to increase ticket costs by 9–13%. While carriers initially requested a fuel surcharge increase up to 50%, the government capped it at 38%. 

Transportation Minister Dudy ​Purwagandhi said the decision aims to maintain fare accessibility for passengers and prevent significant losses for airlines.

Airlangga noted that this policy will remain in effect for the next two months and will be reviewed depending on developments in the Middle East.

By Jeyhun Aghazada