Jakarta (ANTARA) - Indonesia’s Transportation Ministry confirmed that domestic economy-class airfares will fall 11 percent to 13 percent during the 2026 Christmas and 2027 New Year holiday period under a government stimulus package.
The ministry has briefed airlines on the policy, Director General of Civil Aviation Lukman F. Laisa said after a coordination meeting with the ministry's air transport directorate.
"We have met with airline representatives, and the stimulus is expected to lower domestic economy-class fares by 11 percent to 13 percent," Lukman told reporters on Monday.
The fare reductions will apply to flights from Dec. 22, 2026, through Jan. 10, 2027, as the government seeks to ease travel costs during the annual year-end rush.
Lukman urged airlines to comply, saying the ministry would monitor implementation and could penalize carriers that failed to follow the policy.
The initiative follows an appeal by Home Affairs Minister Muhammad Tito Karnavian to keep airfares affordable ahead of the holidays and prevent rising transportation costs from adding to inflation.
At a coordination meeting in Jakarta, Karnavian urged aviation authorities to discourage airlines from charging fares at the regulatory ceiling during the peak travel season.
He said higher passenger volumes would increase seat occupancy, allowing airlines to remain profitable without charging the highest permitted fares.
"With passenger load factors expected to rise as travel demand increases, airlines can remain profitable. We therefore urge them to lower fares," Karnavian said.
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Translator: Muhammad Harianto, Uyu Liman
Editor: Rahmad Nasution
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