High airfares push Indonesia to offer bundled travel packages

Makassar, South Sulawesi (ANTARA) - Indonesia’s Ministry of Tourism is rolling out new measures, including flight subsidies and bundled travel packages, to protect national tourism growth from rising domestic airfares.

"The issue of airfares is a major concern for the government because it directly affects public access to various tourist destinations across Indonesia," Deputy Minister of Tourism Ni Luh Puspa said during an official visit to Makassar on Saturday.

Puspa noted that the ministry is coordinating closely with the Ministry of Transportation, which regulates airline ticket caps, adding that President Prabowo Subianto has also taken note of the issue.

To mitigate high travel costs across the vast archipelago, the ministry is introducing a "bundling" strategy that combines airfare with accommodation and local tour packages to offer more competitive rates.

The move comes as jet fuel prices continue to push airfares higher.

In September 2026, the Ministry of Transportation raised the maximum fuel surcharge for domestic economy-class flights to 40 percent of the upper-limit fare, up from 30 percent the previous month.

The adjustment is expected to increase average ticket prices by roughly 8 percent.

To soften the impact on travelers, the Indonesian government previously rolled out tax relief under Ministry of Finance Regulation No. 24 of 2026, which fully subsidizes value-added tax (VAT) on domestic economy flight tickets, covering both base fares and fuel surcharges.

Despite the transportation cost pressures, foreign tourist arrivals to Indonesia reached 8.98 million between January and July 2026, representing a 5.23 percent increase year-on-year, the ministry stated.

The government is continuing to expand domestic travel initiatives, tourism villages, and regional infrastructure to maintain momentum.

Translator: Suriani Mappong, Uyu Liman
Editor: Aditya Eko Sigit Wicaksono
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