Indonesia to allow airlines to raise fares by up to 13%, minister says

Indonesia will allow airlines to raise ticket prices by increasing the ​fuel surcharge, while waiving some airline-related taxes, senior ‌economic minister Airlangga Hartarto told reporters on Monday.

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• Airlines are now allowed to raise ticket fares after the ​government said it would allow a fuel ​surcharge hike of up to 38% of the ⁠upper airfare limit, but it will also ​introduce tax exemptions and other policies in a ​bid to control fares amid the ongoing war in the Middle East.
• “The government has prepared mitigation measures so ​that ticket prices remain affordable to people,” ​Airlangga said.
• The measures include exemptions for value-added taxes for airlines and ‌import ⁠duties for aircraft spare parts.
• The government will allow airfare hikes in the range of 9%-13%.
• Airlines were asking for a 50% fuel surcharge, said Indonesia’s Transport Minister Dudy ​Purwagandhi, adding that ​the government views 38% ⁠as the ideal figure to maintain purchasing power and allow the airlines to avoid ​heavy losses.
• Airlangga said the policy would ​be ⁠in effect for the next two months and is subject to further evaluations depending on ⁠the ​developments on the war in ​the Middle East.