Indonesia Ministry of Transportation reviews airfare adjustments

The Indonesian Ministry of Transportation is reviewing potential adjustments to aircraft ticket tariffs. The goal is to balance the business needs of airlines with public affordability while managing national inflation.

Hermanta, Head of the Transportation Policy Agency (BKT), stated that a study conducted with the Bandung Institute of Technology (ITB) found a very weak statistical correlation between monthly air transport inflation and general national inflation. Based on Pearson correlation analysis from January 2024 to September 2026, the coefficient was only 0.009.

Because of this, Hermanta noted that transportation inflation is a cross-sector responsibility requiring clear policy coordination. The study also highlighted that tariff adjustments impact regions differently, suggesting that new policies must consider regional characteristics, especially for areas highly dependent on air travel.

Minister of Transportation Dudy Purwaghandi previously acknowledged public complaints regarding high ticket prices, attributing the costs to rising aviation fuel prices and the weakening of the rupiah against the US dollar. The BKT study recommends strengthening integrated flight data and evaluating the effectiveness of short-term stimuli.