Jakarta, ThedailyID — You may have noticed that flights to Singapore, Malaysia, or other nearby countries can sometimes cost less than domestic flights in Indonesia.
For example, a Google Flights search showed tickets from Soekarno-Hatta Airport to Singapore on September 30 starting at Rp1,106,670. A flight to Padang on the same day started at Rp1,117,885.
So, why can a domestic flight cost more than an international one?
The answer involves several factors. Fuel costs, taxes, airline competition, available seats, and operating expenses can all influence ticket prices.
A similar trend has also appeared in the United States. Fortune reported in June 2026 that domestic airfares had risen 23.2% compared with March 2025, while international fares increased 11.5% over the same period.
Here are five factors that can explain the difference.
1. Fuel Prices
Aviation fuel is one of the biggest operating costs for airlines. Changes in jet fuel prices can therefore affect ticket prices.
In Indonesia, the Transportation Ministry raised the maximum fuel surcharge for domestic economy flights in September 2026. The limit increased from 30% to 40% of the upper fare limit.
The policy followed a 6.5% increase in average jet fuel prices between August and September. The ministry estimated that the adjustment could increase ticket prices by up to 8%.
2. Taxes and Other Fees
The base fare is not the only cost included in a ticket. Taxes, airport charges, ground handling, and other fees can also affect the final price.
In Indonesia, taxes and other aviation costs have also become part of discussions about domestic airfare. These include value-added tax, fuel costs, and aircraft maintenance expenses.
The International Air Transport Association has also noted that government and regulatory charges can add to the overall cost of air travel.
3. Airline Competition
Competition can have a major effect on airfare. Routes served by several airlines generally face greater pressure to keep prices competitive.
A 2026 report from the US Government Accountability Office found that stronger competition tends to push fares lower. Meanwhile, airline mergers that reduce the number of competitors on a route can lead to higher fares in the short term.
As a result, some international routes may face stronger competition than particular domestic routes.
4. Limited Flight Capacity
Supply and demand also affect ticket prices. When demand is high but only a limited number of seats are available, airlines can charge higher fares.
This applies to both domestic and international routes. Each route has different numbers of flights, available seats, and passenger demand.
That is why ticket prices cannot be determined simply by looking at the distance between two destinations.
5. Distance Is Not the Only Factor
A longer flight does not automatically mean a more expensive ticket. Airlines also have to consider airport charges, crew costs, maintenance, aircraft use, and other operating expenses.
Shorter flights can sometimes carry a higher cost per unit. Some expenses, such as landing, ground handling, takeoff, landing procedures, and aircraft turnaround, still have to be covered during a shorter journey.
Therefore, the distance between two cities is only one part of the calculation.
These factors explain why a flight to a nearby international destination can sometimes cost less than a domestic flight. Airfare depends on the overall economics of a route, not simply how far the aircraft travels.
