Indonesia authorizes an increase in airfares and reduces taxes to mitigate the impact of fuel costs.

On Monday (6), the Indonesian government announced that it will allow airlines to increase ticket prices by raising the fuel surcharge, in response to rising energy costs amid the war in the Middle East. According to Senior Minister of Economic Affairs, Airlangga Hartarto, the measure is part of a package to mitigate the impacts on the sector and keep fares affordable for the population. The government authorized an increase in the fuel surcharge of up to 38% of the maximum airfare limit, which should result in adjustments between 9% and 13% in ticket prices. At the same time, compensatory measures were announced, such as: exemption from value-added tax (VAT) for airlines and reduction of import tariffs for aircraft spare parts. According to Hartarto, the policy will have an initial validity of two months and may be revised according to the evolution of the conflict in the Middle East and its impacts on fuel prices.

This text was translated by machine from Brazilian Portuguese.