AFP, Jakarta

Indonesia announced on Monday a 28-percentage point rise in the surcharge on jet fuel, and said it will allow airlines to raise the domestic ticket price, which the government caps, by up to 13 percent.

As global oil prices soar on the back of the Middle East war, Economy Minister Airlangga Hartarto told reporters the jet fuel surcharge would rise from 10 to 38 percent, and the base ticket price between nine and 13 percent.

Southeast Asia’s largest low-cost carrier AirAsia X said Monday it, too, was raising ticket prices and cutting routes to cushion the impact of the war on Iran.

In Jakarta, Airlangga said the government would bear the 11-percent value added tax on domestic flight tickets to offset the impact of the price rise on travellers.

“The amount of subsidy given by the government is around 1.3 trillion rupiah (about $76 million) per month,” the minister said.

The measures would be reevaluated after two months, he added, depending on whether “the war in the Middle East continues”.