Indonesia's government has raised the fuel surcharge on domestic flights to 38 percent — up from 10 percent for jets and 25 percent for propeller aircraft — after state energy firm Pertamina increased jet fuel prices by roughly 70 percent for April, triggering sharp rises in airfares that passengers say have exceeded 50 percent on some routes. While authorities had projected fare increases of 9 to 13 percent, backed by a promised waiver of the 11 percent value-added tax on economy tickets, airlines say those subsidies have yet to be formally disbursed, leaving carriers no choice but to pass higher costs directly to travellers. The situation is being closely watched as analysts warn it could suppress passenger demand and squeeze airline revenues, with full relief measures unlikely to bring price increases down to the government's target range for at least two to three months.