US EditionIndonesia to Allow Airlines to Raise Fares by up to 13%, Minister Says
The government will cover the 11% value-added tax and drop aircraft spare-part import duties to soften higher airline costs.
- On Monday, Indonesia announced a 28-percentage point rise in jet fuel surcharges, permitting airlines to increase capped domestic ticket prices by up to 13 percent.
- Global crude prices have soared past $100 per barrel since the Middle East war began, forcing Economy Minister Airlangga Hartarto to adjust jet fuel surcharges from 10 to 38 percent.
- To mitigate the impact on travelers, the government will cover the 11-percent value added tax on domestic tickets and eliminate import duties on aircraft spare parts.
- AirAsia and other carriers are simultaneously raising fares and cutting routes to cushion operational costs, while the government plans to reevaluate these measures after two months.
- Finance Minister Purbaya Yudhi Sadewa affirmed the government will maintain subsidized fuel prices through year-end, keeping the fiscal deficit around 2.9 percent of GDP.
17 Articles
17 Articles
Indonesia raises aviation fuel surcharge, flight ticket prices
Indonesia on Monday announced a 28-percentage point rise in the surcharge on aviation fuel, and said it would allow airlines to raise the domestic ticket price, which the government caps, by up to 13 percent. As global oil prices soar on the back of the Middle East war, Economy Minister Airlangga Hartarto told reporters the fuel surcharge would rise from 10 to 38 percent, and the base ticket price between nine and 13 percent. mrc/mlr/mtp
Indonesia raises jet fuel surcharge, flight ticket prices as oil soars
JAKARTA – Indonesia announced on Monday a 28-percentage point rise in the surcharge on jet fuel, and said it will allow airlines to raise the domestic ticket price, which the government caps, by up to 13 percent. As global oil prices soar on the back of the Middle East war, Economy Minister Airlangga Hartarto told reporters the jet fuel surcharge would rise from 10 to 38 percent, and the base ticket price between nine and 13 percent. Southeast A…
Indonesia lets airlines raise ticket prices up to 13% as Middle East war sends oil past $100
As global oil prices soar on the back of the Middle East war, Economy Minister Airlangga Hartarto told reporters the jet fuel surcharge would rise from 10 to 38%, and the base ticket price between nine and 13%. Southeast Asia’s largest low-cost carrier AirAsia X said Monday it, too, was raising ticket prices and cutting routes to cushion the impact of the war on Iran. In Jakarta, Airlangga said the government would bear the 11% value added tax o…
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