JAKARTA: The Tourism Ministry says the recent increase in the aviation fuel surcharge could prompt price-sensitive domestic travelers to rethink their plans and opt for closer destinations that do not require flying.
The ministry’s deputy for marketing, Ni Made Ayu Marthini, said the shift is likely to be most visible on Java, where well-developed rail networks and toll roads make overland travel increasingly convenient, allowing trips from Jakarta to East Java within a day’s drive.
However, she noted that the impact may be limited in other parts of the country, where transportation infrastructure remains less developed and air travel is often the only practical option for long-distance mobility.
To capitalise on the potential shift, the government plans to accelerate the development of land connectivity to stimulate tourism flows.
“We hope to be able to get people to move from Lampung to North Sumatra [quicker],” Marthini told The Jakarta Post on April 14, adding that several priority destinations in Sumatra, including Riau Islands, Bangka Belitung and Lake Toba, could benefit from expanded toll road and rail networks.
On April 6, Coordinating Economy Minister Airlangga Hartarto announced an increase in the aviation fuel surcharge, which is charged to consumers to cover fuel costs, to 38 per cent from the previous 10 per cent for jet aircraft and 25 percent for propeller planes, as a result of price rises caused by the United States-Israeli war against Iran.
Despite the steep jump, the government is seeking to keep the overall increase in airfares at 9 to 13 per cent by temporarily waiving value-added tax (VAT) on tickets, setting aside Rp 1.3 trillion (US$75.2 million) per month for the measure.
The government will also temporarily waive import duties on spare parts “to safeguard and increase the competitiveness of the aviation industry,” Airlangga said.
In a separate exclusive interview with the Post on April 9, Tourism Minister Widiyanti Putri Wardhana sought to ease concerns over the surcharge hike, saying airlines are unlikely to see their revenues hit as demand for flights still outstrips the available fleet.
She also pointed out that Indonesia’s 38 per cent fuel surcharge remains relatively modest compared with other markets, citing Cathay Pacific’s 105 per cent and Air India’s 50 per cent.
Widiyanti added that domestic tourism should remain resilient, as Indonesians have long relied more on land transportation than air travel.
In 2024, some 80.4 per cent of domestic trips were made overland, reflecting the public’s preference for roads and railways.
Still, she acknowledged that stronger infrastructure is urgently needed to ease bottlenecks in major tourism hubs such as Bali.
Widiyanti said the Iran war and the resulting energy shock could even serve as a catalyst, encouraging international investors to support transport diversification, including ferries, marine tourism ports and seaplane routes.
However, she cautioned that financing remains a major hurdle, as large-scale infrastructure projects often come with payback periods of more than 30 years, making them less appealing to private investors without strong government backing.
The Tourism Ministry’s Marthini added that “people say a crisis creates good policy or opportunity, this is it.”
She pointed to the potential for a stronger maritime system, noting that public-private partnerships are already enabling ships to carry passengers across to Bali. - The Jakarta Post/ANN
