Indonesia rolls out bundled travel packages to counter soaring airfares
Indonesia's tourism ministry will bundle flights, hotels and tours to lower costs as jet fuel pushes ticket prices up.
During a visit to Makassar, Deputy Minister of Tourism Ni Luh Puspa said the ministry is working with the Ministry of Transportation to address high airfares that limit access to Indonesia's many tourist spots. A new "bundling" scheme will pair airline tickets with hotel stays and local tour services to offer more affordable rates. The move comes after the Transportation Ministry raised the fuel surcharge cap for domestic economy flights to 40 percent of the upper-limit fare, a change expected to lift average ticket prices by roughly 8 percent.
To offset the impact, the Ministry of Finance's Regulation No. 24 of 2026 fully subsidizes VAT on domestic economy tickets, covering both base fares and surcharges. President Prabowo Subianto has taken note of the situation, and the tourism ministry highlighted that foreign visitor numbers still grew 5.23 percent year-on-year to 8.98 million in the first seven months of 2026. Ongoing efforts also include expanding domestic travel initiatives, tourism villages, and regional infrastructure.
Why it matters
Travel bundles aim to keep Indonesia's tourism growth steady despite rising flight costs.
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