(April 6): Indonesia will slash the value-added tax on economy class tickets for two months to ease the burden of rising fuel surcharges on airfare to mitigate higher energy costs triggered by the Iran war. Fuel surcharges will jump to 38% of the price of the most expensive airfare from 10%, Coordinating Economic Minister Airlangga Hartarto said at a briefing on Monday. The government is budgeting 1.3 trillion rupiah (US$76 million or RM307.5 million) a month to ensure flights remain affordable. Indonesian carriers last month pushed the government to raise fuel surcharges and airfare price ceilings to make up for rising jet fuel prices. Shares of PT Garuda Indonesia maintained an earlier gain of 1.5%, while PT AirAsia Indonesia held a 2.4% loss on Monday.

Source: The Edge Markets April 06, 2026 12:06 UTC