Jakarta, March 9, 2026 — Indonesia’s competition watchdog has launched a preliminary investigation into domestic airline ticket pricing after detecting a sustained rise in fares over the past two years, raising concerns about possible anti-competitive practices ahead of the busy Eid homecoming season.
The Business Competition Supervisory Commission (KPPU) announced Sunday that the inquiry follows its monitoring of the implementation of Decision No. 15/KPPU-I/2019 concerning scheduled commercial air transportation services for domestic economy class passengers.
The decision previously found several airlines guilty of entering into agreements to fix ticket prices. Those carriers include Garuda Indonesia, Citilink Indonesia, Sriwijaya Air, NAM Air, Batik Air, Lion Air and Wings Air.
Under the ruling, airlines were required to notify the KPPU in writing before implementing policies that could affect competition, ticket prices paid by consumers or the overall market structure for a period of two years.
The ruling gained permanent legal force following a decision by the Supreme Court of Indonesia in September 2023. The KPPU subsequently monitored compliance from September 2023 until September 2025, summoning industry representatives and reviewing documents submitted by the airlines.
Based on that oversight process, the commission decided to open a preliminary investigation into possible ticket price fixing by domestic carriers. The regulator also plans to submit recommendations to the Indonesian Ministry of Transportation based on its findings.
KPPU said its monitoring shows airline ticket prices typically climb during periods of high demand, particularly during major holidays such as Eid al‑Fitr, when millions of Indonesians travel to their hometowns in the annual homecoming tradition known as “mudik.”
Data analysis of key domestic routes, including the busy Jakarta–Surabaya corridor, indicates that ticket prices tend to rise sharply ahead of the Eid travel period as demand surges.
With this year’s holiday travel approaching, KPPU urged airlines to keep fares at reasonable levels and avoid excessive pricing that could burden passengers.
“Fair competition in the aviation industry is crucial to ensure the public receives air transportation services at reasonable, transparent and competitive prices,” KPPU Chairman M. Fanshurullah Asa said in a statement. He added that airlines must comply with existing tariff regulations and maintain transparency in their pricing mechanisms.
The commission said it will continue monitoring airfare developments during the Eid period. If evidence emerges of unfair competition or practices that harm consumers, the regulator warned it will pursue enforcement measures in accordance with Indonesian law.
Through the oversight, KPPU said it hopes aviation businesses will contribute to providing affordable and fair air transportation services for the wider public during one of the country’s busiest travel seasons.
