Gotrade News - Jet fuel prices have soared due to conflicts in the Middle East, but the government guarantees that airfares will remain affordable. Coordinating Minister for Economic Affairs Airlangga Hartarto stated that mitigation measures are being applied to protect consumer purchasing power.
- The fuel price hike has increased airline operational costs.
- The government responds with subsidies and tariff policy adjustments.
- Ticket prices are expected to rise moderately due to these interventions.
The surge in fuel costs has triggered a ripple effect across the aviation industry. Fuel surcharges have increased, with jet aircraft rates rising from 10% to 38% and propeller aircraft from 25% to 38%.
The government has introduced an 11% VAT subsidy on domestic economy class airfares and eliminated import duties on spare parts, keeping ticket prices to a modest increase of 9% to 13%, which is lower than it would be without intervention.
For instance, the Jakarta–Yogyakarta route, previously around IDR 972,780, is expected to rise to between IDR 1.06 million and IDR 1.09 million. Meanwhile, the Jakarta–Balikpapan route will increase to the range of IDR 2.8 million to IDR 2.9 million from the original IDR 2.6 million.
Transport Minister Dudy Purwagandhi emphasized that this policy balances the interests of the industry and the public amidst global pressure. The fiscal measures prevent some of the fare increases from being passed on to passengers.
Airlangga Hartarto also mentioned that this policy benefits the national economy. GDP output is projected to rise by up to USD 1.49 billion, or approximately IDR 24.58 trillion, signaling positive impacts from the government's strategy.
Reference:
- Berita Satu, Kenaikan Harga Tiket Pesawat setelah Penyesuaian. Accessed on April 7, 2026
- Bloomberg Technoz, Harga Avtur Naik, Pemerintah Jaga Tiket Pesawat Terjangkau. Accessed on April 7, 2026
- Kompas, Efek Berantai Avtur Mahal: Tiket Naik Terbatas, Rute Maskapai Diubah, Pemerintah Turun Tangan. Accessed on April 7, 2026
Featured Image: GPT Image 1.5
