Gotrade News - The recent rise in jet fuel prices has led the Indonesian government to implement various policies to curb a spike in airfare costs. The increase in jet fuel prices is attributed to geopolitical instability in the Middle East, driving up crude oil prices.
The Minister of Energy and Mineral Resources, Bahlil Lahadalia, stated that despite the rise in jet fuel prices, they remain more competitive compared to neighboring countries. However, the surge has still sparked concerns within the aviation industry.
The Coordinating Minister for Economic Affairs, Airlangga Hartarto, revealed an adjustment in the fuel surcharge that has increased by up to 38% for jet and propeller aircraft. This measure is intended to balance the impact of rising jet fuel prices on airline tickets.
The government also assures that domestic airfares will see a controlled increase of between 9% and 13%. Additionally, they are offering an 11% government-borne value-added tax (VAT) incentive for economy class flight tickets.
These policy measures are being applied temporarily for two months, with a total subsidy of approximately IDR 2.6 trillion, and will continue to be evaluated based on the global geopolitical situation.
Apart from the fuel surcharge adjustment, the government is also offering payment system relaxations between airlines and Pertamina, and reducing import duties on aircraft spare parts to 0% to lower airline operational costs.
The policy to reduce import duties on aircraft spare parts is aimed at strengthening the competitiveness of the aircraft maintenance industry, as well as boosting economic activity and the country's GDP.
Airlangga emphasized the importance of these comprehensive policies for the sustainability of the aviation industry while ensuring an efficient economy amidst global challenges.
They hope that all these efforts can maintain a balance between controlling airfare hikes and sustaining the national aviation industry's viability under the pressure of rising jet fuel prices.
Reference:
- Liputan6, Harga Avtur Melonjak Drastis, Menteri ESDM Sebut Masih Kompetitif Dibanding Negara Tetangga. Accessed on April 6, 2026
- MetroTV, kj2CDZQM antisipasi kenaikan harga avtur bea masuk suku cadang pesawat jadi 0. Accessed on April 6, 2026
- Berita Satu, Harga Avtur Naik, Pemerintah Jaga Kenaikan Tiket Pesawat. Accessed on April 6, 2026
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