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Indonesia Moves to Keep Airfare Stable Despite Rising Avtur Prices, Offers VAT Subsidy

Nia Kurnia Editor : Sajadi - Tuesday, 7 April 2026 - 05:00 WIB

Tuesday, 7 April 2026 - 05:00 WIB

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An aircraft preparing to park at an airport (Photo: Mina)

Jakarta, MINA – The government has ensured that increases in domestic airline ticket prices remain under control amid the surge in aviation fuel (avtur) prices, which are following global market dynamics.

This measure is taken to maintain ticket affordability for the public amid significantly rising airline operational costs.

Coordinating Minister for Economic Affairs Airlangga Hartarto on Monday explained that aviation fuel prices are a major component of airline operational cost structures, accounting for around 40% of total costs.

Since April 1, 2026, avtur prices at several domestic airports have increased in line with the global market, thereby affecting flight costs that the government must anticipate.

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As one of the efforts to mitigate the impact of rising avtur prices, the government through the Ministry of Transportation has adjusted the fuel surcharge to 38% for all types of aircraft, replacing the previous scheme that differentiated between jet and propeller aircraft. This policy aims to give airlines room to adjust costs while still maintaining the public’s purchasing power.

The government has also prepared incentives in the form of a Value Added Tax (VAT) subsidy on air transportation tickets, which will be borne by the government (DTP). This scheme is allocated with a budget of around Rp 1.3 trillion per month for two months, or a total of approximately Rp 2.6 trillion, to ensure that increases in economy class ticket prices do not burden the public.

In addition, the exemption of import duties on aircraft spare parts to 0% has been implemented to strengthen the efficiency of airline operational costs and to encourage the improvement of the domestic maintenance, repair, and overhaul (MRO) sector.

This policy is also expected to create a multiplier effect on the national aviation industry.

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In the global context, the surge in avtur prices is not only experienced by Indonesia. Several neighboring countries such as Thailand and the Philippines have also recorded higher increases in avtur prices, making this price adjustment policy necessary to keep the aviation industry competitive at the regional level.[]

Mi’raj News Agency (MINA)

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