JAKARTA, April 6 (Xinhua) -- Indonesia expects domestic airfares to rise by around 9 to 13 percent following a sharp increase in aviation fuel prices driven by global geopolitical tensions, Coordinating Minister for Economic Affairs Airlangga Hartarto said Monday.
Speaking at a press conference in Jakarta, Airlangga said the pressure on ticket prices was unavoidable as aviation fuel accounted for about 40 percent of airline operational costs and followed global market trends.
Airlangga said the government would bear the 11-percent value-added tax on domestic flight tickets to offset the impact of the price hike on travelers. The amount of subsidy given by the government is around 1.3 trillion rupiah (about 76.34 million dollars) per month, the minister added.
Airlangga said that the policy would be in effect for the next two months, and subject to further evaluation depending on developments in the Middle East conflict. ■