In Indonesia, economy-class domestic airfares may rise by 9–13%. The authorities attribute this decision to higher aviation fuel costs amid tensions in the Middle East. At the same time, the government has increased the maximum fuel surcharge airlines can add and said it will try to keep price rises within this range.
In Bali, the issue has already been raised in the local parliament. Bali’s Deputy Speaker I Wayan Disel Astawa said that MPs would discuss the situation with airlines and the central government to ensure the increase is not too sharp during the transition period. According to him, it has not affected tourist arrivals so far, but the authorities will monitor the situation.
To partially curb price rises, the government has taken over the value-added tax on tickets for economy-class domestic scheduled flights for two months. In addition, a zero import duty has been introduced for aircraft parts. In Jakarta, they expect these measures will be enough to prevent airlines from raising fares above the announced cap.
The price increase is already noticeable in sales. In mid-March, tickets from Jakarta to Denpasar started at around 685,000–780,000 rupiah. Now the cheapest ticket on a direct Jakarta–Denpasar flight with Lion Air is 1.32 million rupiah per person, and with Garuda Indonesia it is 1.84 million.
Source: detik.com
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