Indonesia’s Tito proposes energy and air travel subsidies to curb inflation
The home affairs minister wants measures ahead of Christmas and New Year, but the proposals still require further government discussion.
Indonesian Home Affairs Minister Tito Karnavian has proposed subsidising electricity, fuel and air travel to contain inflation ahead of Christmas and New Year. He presented the proposals at a ministerial coordination meeting in Jakarta on 26 October 2026.
Tito said increased travel during the year-end holidays could lift demand and commodity prices. Pointing to a relatively low December comparison base, he called for measures to prevent annual inflation that month from exceeding 3.5 per cent.
His electricity proposal would cover customers with 1,200-watt connections. He said a similar measure had previously helped bring about deflation. He also suggested fuel subsidies, a possible increase in fuel production and supply, and support for air transport.
Tito asked the Transport Ministry to convene airlines and urge them not to charge the highest permitted fares during the holiday period. He argued that higher passenger numbers would still allow carriers to make profits without setting tickets at the maximum level.
He also called for social assistance to support purchasing power, alongside market operations involving local governments, the National Food Agency and Perum Bulog. The subsidy proposals will be discussed further at a limited cabinet meeting with President Prabowo Subianto.
