High Airplane Ticket Prices: Ministry of Tourism Prepares Tourism Subsidies and Bundled Travel Packages.

The Ministry of Tourism (Kemenpar) has prepared a series of measures to sustain growth of Indonesia's national tourism sector amid persistently high airfare prices. One of the promoted strategies includes flight subsidies alongside travel packages that combine flight tickets with tourism products.

Deputy Minister of Tourism Ni Luh Puspa stated that airfare costs are a core government concern, as this issue directly impacts public accessibility to various destinations across Indonesia.

"Airfare prices remain a priority focus for the government, as they directly affect the public's ability to reach tourism destinations throughout Indonesia. For this reason, the Ministry of Tourism is preparing a range of strategic measures," stated Ni Luh Puspa during an official working visit to the Makassar Tourism Polytechnic in South Sulawesi.

According to Ni Luh, the Ministry of Tourism continues to coordinate with the Ministry of Transportation to find solutions for aviation costs. Airfare pricing falls under the full authority of the Ministry of Transportation, and this issue has also received direct attention from the President.

She explained that cross-sector coordination is required to resolve airfare issues, as the aviation industry involves multiple stakeholders ranging from relevant government ministries to tourism business operators.

Ministry of Tourism Promotes Bundled Tourism Packages & Air Tickets

Alongside developing policies to reduce travel cost burdens, the Ministry of Tourism has also designed a bundling scheme that integrates travel tickets with tourism product offerings.

This concept is expected to provide travellers with more competitively priced travel alternatives. At the same time, these bundled packages can also boost the attractiveness of tourism destinations across all regions.

This strategy is considered critical, as air transport costs are one of the primary factors travellers evaluate when selecting a holiday destination. This impact becomes even more pronounced for locations that rely exclusively on air travel for access.

With more affordable travel costs, the government hopes the public will gain wider destination options while also increasing domestic tourist mobility across the country.

Government Provides Tax Incentives for Domestic Flights

Previously, the government had also extended support through tax incentive policies for domestic economy class flights for the 2026 period.

As stipulated in Minister of Finance Regulation Number 24 of 2026, Value Added Tax (VAT) for scheduled commercial domestic air transport services for economy class is fully borne by the government.

This policy covers multiple components included in flight fares, including base fare and fuel surcharge, in accordance with applicable regulations.

Even so, aviation costs remain an active government concern. In September 2026, the Ministry of Transportation set the maximum fuel surcharge for domestic economy class flights at 40% of the official Upper Limit Tariff (TBA).

This figure marks an increase from the previous month's maximum cap, which had been set at 30%.

This fuel surcharge adjustment was implemented in response to global jet fuel price movements. On average, this policy is estimated to impact final air ticket prices by approximately 8%.

Indonesian Tourism Continues to Record Growth

Despite pressure from rising air transport costs, Indonesia's tourism sector performance continues to show positive growth.

Ministry of Tourism records show that international tourist arrivals reached 8.98 million visits as of July 2026. This figure marks a 5.23% increase compared to the same period in the previous year.

This growth confirms that national tourism activity still maintains positive momentum, even as the industry faces various challenges including travel cost pressures.

Alongside targeting international visitors, the government is also continuously strengthening domestic archipelago tourism. This strategy includes development of community tourism villages and promotion of regional destinations nationwide.

Strengthening domestic tourism is expected to sustain tourist mobility while also expanding the economic benefits of tourism for local communities.

Through a combined approach of transport policies, travel packages, destination development and tourism promotion, the government is working to preserve public access to tourism destinations. These measures are also targeted at sustaining national tourism sector growth amid ongoing transport cost pressures and global economic dynamics.