Indonesia’s Policy Amid Surging Jet Fuel Prices Driven By The Iran Conflict

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Indonesia’s Policy Amid Surging Jet Fuel Prices Driven By The Iran Conflict

Garuda Indonesia aircraft are parked at Soekarno-Hatta International Airport in Jakarta, Indonesia, on April 19, 2026. The conflict in the Middle East involving the United States, Israel, and Iran has led to a surge in global jet fuel prices, resulting in higher airfares, including in Indonesia. In recent weeks, rising aviation turbine fuel prices have significantly increased airlines' operating costs, prompting ticket price hikes. In response, the Indonesian government has reduced the value-added tax (VAT) on economy class tickets for two months to mitigate the impact of rising fuel surcharges and maintain affordable air travel amid escalating energy costs. (Photo by Agoes Rudianto/NurPhoto)


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