Indonesia permits airline fare increases of up to 13 percent

Indonesia will allow airlines to raise fares by up to 13 percent via fuel surcharges. Tax waivers for parts and VAT aim to keep tickets affordable for now.

Xurve View

The government of Indonesia has authorized airlines to raise ticket fares by 9% to 13% as part of a broader strategy to manage the impact of rising fuel costs. Senior Economic Minister Airlangga Hartarto stated on Monday that the decision involves allowing a fuel surcharge hike of up to 38% of the upper airfare limit. To balance the fare increases, the administration is implementing several mitigation measures aimed at keeping travel costs within reach for the public. These measures include exemptions for value-added taxes on airlines and the waiver of import duties for aircraft spare parts. > The government has prepared mitigation measures so that ticket prices remain affordable to people, Airlangga said. Transport Minister Dudy Purwagandhi noted that domestic carriers had initially requested a fuel surcharge of 50%. However, the government settled on 38% as an ideal figure to maintain consumer purchasing power while helping airlines avoid significant financial losses amid the ongoing conflict in the Middle East. The new pricing policy will be in effect for an initial period of two months. Authorities will conduct further evaluations depending on geopolitical developments and their subsequent effect on the aviation industry.

IUX24

IUX24 AI-powered financial news and market intelligence. Think and act like smart money.

IFZA Properties, Dubai Silicon Oasis, DSO-IFZA, Dubai, United Arab Emirates

Copyright IUX24 MEDIA - FZCO. All rights reserved.

Powered by AI • Made with precision

IUX24 is an information and analytics platform providing news, market data, analytical tools, and AI-powered features for informational and educational purposes. The Services and information provided do not constitute investment advice, trading signals, or brokerage services. Investing involves risk, and Users should carefully evaluate information before making investment decisions.