Jakarta, April 6 -- The Indonesian government has stated that it will keep the domestic airfare increases in the range of 9 to 13 percent in response to rising aviation fuel prices triggered by tensions in the Middle East.

"To keep domestic airfares affordable for the public, the government is capping price increases within a range of 9 to 13 percent," Coordinating Minister for Economic Affairs Airlangga Hartarto said during a press conference in Jakarta on Monday.

The government has prepared several mechanisms to curb these price hikes. First, the government will provide a tax incentive in the form of a government-borne value-added tax of 11 percent for economy-class tickets.

"Based on these calculations, the government is providing a...