Indonesia has authorized airlines to increase ticket prices by raising the fuel surcharge, while simultaneously waiving certain airline-related taxes, senior economic minister Airlangga Hartarto announced on Monday. This decision comes as part of government efforts to balance fare affordability with the financial challenges faced by airlines amid the ongoing conflict in the Middle East.
The government has approved a fuel surcharge increase of up to 38% of the upper airfare limit. Alongside this, it will implement tax exemptions, including relief from value-added taxes for airlines and import duties on aircraft spare parts, to help mitigate the impact on ticket prices.
Airlangga emphasized that these measures aim to keep fares accessible for the public. Airlines have been permitted to raise ticket prices within a range of 9% to 13%. Transport Minister Dudy Purwagandhi noted that airlines initially requested a 50% fuel surcharge increase, but the government considers 38% an optimal level to preserve consumer purchasing power while preventing significant losses for carriers.
These policies are set to remain in effect for the next two months, with further evaluations planned based on developments related to the Middle East conflict.
