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Indonesia Imposes Higher Fuel Levy on Domestic Airlines Amid Energy Shortage

Indonesian air passengers are facing a probable hike in airfares following the government’s decision to introduce a 38 percent increase in fuel levies for domestic airlines, prompted by the strain of higher oil prices and dwindling energy supplies.
According to Transportation Minister Dudy Purwagandhi, the fuel levy hike was not made unilaterally, but rather through collaborative efforts and input from the airlines themselves, as reported by the Jakarta Globe.
The fuel levy is designed to enable air carriers to absorb the escalating operational costs associated with rising fuel prices without entirely shifting the burden onto passengers.

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