Jakarta. The government has capped any increase in economy-class airfares at 9–13%, warning airlines not to exceed the limit after receiving tax breaks and cost relief measures.

“The allowed increase is in the range of 9–13%, and it must not go beyond that,” Transportation Minister Dudy Purwagandhi told reporters in Jakarta on Thursday.

He said the government has rolled out multiple incentives to ease airlines’ operational costs, leaving no justification for fare hikes beyond the set ceiling. These include value-added tax (VAT) being borne by the government, a permitted increase in fuel surcharges of up to 38%, and exemptions on spare parts.

“The government policy is clear. VAT is covered, fuel surcharges are allowed to rise up to 38%, and spare parts are exempted,” Dudy said.

With these measures in place, he stressed that airlines’ cost structures should remain manageable, keeping fare adjustments within the mandated range.

“We have calculated that cost increases from the engine side are only around 9–13%,” he added.

The government will continue to monitor implementation on the ground and has urged airlines to follow the pricing approach used during the recent Eid holiday travel period.

“We ask airlines to follow the scheme applied during the Eid period,” Dudy said.

During the holiday season, ticket prices were relatively stable at around Rp 1.7 million to Rp 1.9 million on certain routes, with minimal public complaints.

“Thankfully, there were almost no complaints about ticket prices during Eid,” he noted.

The fare cap applies only to economy class, while business class ticket pricing remains fully subject to market mechanisms.

“For business class, we do not regulate it because it serves a different segment,” Dudy said.

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