Due to rising aviation fuel prices, the Indonesian government has permitted airlines to increase domestic airfares by between 9 and 13%.
The Indonesian Coordinating Minister for Economic Affairs, Airlangga Hartarto, stated that the government has prepared several measures to ensure ticket price increases remain within this range. One of the policies introduced is the implementation of a Government-Borne Value Added Tax (Pajak Pertambahan Nilai Ditanggung Pemerintah or PPN DTP) of 11% on scheduled domestic economy-class flights.
“To maintain domestic ticket increases within the 9–13% range, the first step is an 11% PPN DTP on scheduled domestic commercial economy-class airfares,” Hartarto said on Monday, the 6th of April.
The government has also allocated Rp1.3 trillion per month for this policy. The programme will run for two months, bringing the total allocation to Rp2.6 trillion. In addition, the government has adjusted the fuel surcharge to 38% for both jet and propeller aircraft, which was previously surcharged at 10% for jets and 25% for propeller aircraft.
The government has also introduced a 0% import duty on aircraft spare parts to help reduce airline operational costs. This policy is expected to strengthen the competitiveness of the aircraft maintenance, repair, and overhaul (MRO) industry.
“Last year, the import cost of spare parts was around Rp500 billion. This policy is expected to reduce airline operational costs,” continued Hartarto.
Previously, the Indonesian National Airline Association (INACA) urged the government to immediately adjust both the fuel surcharge and the Upper Limit Tariff for domestic tickets. This request followed a significant increase in aviation fuel prices. INACA noted that domestic aviation fuel prices rose by an average of 70% between the 1st and 30th of April 2026, while prices for international flights increased by around 80% compared to March.
INACA Chairman Denon Prawiraatmadja stated that such adjustments are necessary to ensure airlines can continue operating while maintaining safety standards and business continuity.
“Adjustments to fuel surcharges and the Upper Limit Tariff must be implemented immediately so airlines can continue operating and maintain national air transport connectivity,” he remarked.