Story perspectives

Indonesia Cuts VAT on Economy Tickets Amid Fuel Surge

4/7/2026

Center

Indonesia Cuts Ticket Tax

Indonesia will temporarily reduce the value-added tax on economy class tickets for two months to counter rising fuel surcharges tied to the Iran war.
Fuel surcharges are expected to rise to 38% of airfare, but the government aims to cap total ticket price increases at 13% by absorbing some costs.
The program allocates a budget of 1.3 trillion rupiah monthly (about $76 million) to support the measure.

Right

Indonesia's Energy Concerns

Indonesia faces rising anxiety as energy prices drive inflation amid surging global oil prices.
Residents such as Ms. Dini Khairani express concern about fuel scarcity and show the immediate household impact.
Finance Minister Purbaya Yudhi Sadewa says the government can maintain subsidized prices through 2026 despite high crude prices.
Economists warn that the fiscal deficit could exceed legal limits if prices remain elevated, signaling policy risk.

1 of 2

Indonesia Cuts Ticket Tax

Indonesia will temporarily reduce the value-added tax on economy class tickets for two months to counter rising fuel surcharges tied to the Iran war.
Fuel surcharges are expected to rise to 38% of airfare, but the government aims to cap total ticket price increases at 13% by absorbing some costs.
The program allocates a budget of 1.3 trillion rupiah monthly (about $76 million) to support the measure.

1 / 2