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THE INDONESIAN National Air Carriers Association (INACA), the national airline association, commends the government’s policy in addressing the steep increase in aviation fuel prices due to the geopolitical crisis in the Middle East.
“We appreciate this government policy, because it is indeed not easy to address the steep increase in aviation fuel prices due to the Middle East geopolitical crisis,” said INACA Chairman Denon Prawiraatmadja in an official statement on Tuesday (04/7), 2026.
Denon added that the government’s policy aligns with the needs of airlines and the public. We believe this policy aligns with the needs of airlines and the public, and there is support from the government through the temporary elimination of 11% VAT and the reduction of import duties on spare parts to 0%.
Denon also hopes this policy can be implemented quickly to assist airline operations in maintaining flight safety and comfort, as well as assisting the public and government in maintaining air transportation connectivity.
Previously, Coordinating Minister for Economic Affairs Airlangga Hartarto stated that the government was limiting domestic airfare increases to a range of 9 to 13%. This measure was taken to maintain affordability amidst soaring aviation fuel prices.
“To keep domestic airfare increases affordable for the public, the government is keeping ticket price increases to only 9 to 13%,” he said at a press conference regarding transportation and fuel policies at the Coordinating Ministry for Economic Affairs in Jakarta, Monday (04/6), 2026.
Airlangga explained that aviation fuel prices would increase as of April 1, 2026. This situation significantly impacts the operational cost structure of national airlines, considering that fuel contributes around 40 percent to total aircraft operating costs.
“Previously, the increase was only 10% for jets and 25% for propellers. Now, everything has been adjusted to 38%, so the increase for jets is around 28% and 13% for propellers,” he concluded. [sources/photo special]
