Indonesia to revise airfare cap once fuel prices stabilize

Jakarta (ANTARA) - The Indonesian government has formulated a new airfare cap that will take effect once aviation fuel prices and global geopolitical conditions stabilize, Transportation Minister Dudy Purwagandhi said.

"Regarding the airfare cap, the new formula has been finalized. Once fuel prices stabilize, we will implement it," Dudy said during a media briefing in Jakarta on Friday.

He said implementation of the new airfare cap still depends on stable global aviation fuel prices to ensure the policy supports the sustainability of the domestic aviation industry.

However, he did not disclose the new fare levels.

Dudy said the new policy was formulated by reviewing the fare components used when the airfare cap was last adjusted in 2019.

The evaluation covered various airline operating cost components to ensure the new fare cap better reflects current industry conditions and changes in aviation costs.

The government considers changes in airline operating costs since 2019 a key basis for adjusting the airfare cap.

Besides aviation fuel prices, the government is also monitoring global geopolitical developments that influence fluctuations in aviation fuel prices.

The Transportation Ministry noted that global aviation fuel prices have begun to decline, opening the way for implementation of the new fare cap if the trend continues.

The government hopes the revised fare cap will strike a balance between affordable air travel for the public and the sustainability of the national airline industry.

"We are seeing global fuel prices begin to decline, and once global geopolitical conditions improve, we will implement the new upper and lower airfare limits," Dudy said.

Current airfare cap regulations remain based on Transportation Ministerial Decree No. 106 of 2019 on Economy-Class Fare Caps for Scheduled Domestic Commercial Flights.

Related news: Tourism ministry seeks solutions to rising airfare costs

Related news: Indonesian govt caps airfare increases at 9--13 percent

Translator: Muhammad Harianto, Raka Adji

Editor: Anton Santoso

Copyright © ANTARA 2026