Indonesia’s domestic air travel market remains significantly below pre-pandemic levels, with a 19 percent decline recorded in 2025 compared to 2019, according to data from BPS-Statistics Indonesia. The slump accounts for more than half of the overall seat capacity reduction in Southeast Asia, representing approximately 31 million of the 54 million seat shortfall. The peak year for Indonesian air travel was 2018, when the country surpassed 100 million domestic passengers, joining the United States, China, India, and Japan as one of only five nations to achieve that milestone. Although, passenger numbers contracted to around 80 million in 2019 and have yet to recover to pre-pandemic levels, remaining below 70 million annually. Despite Indonesia’s favorable demographic and geographic conditions – a population of 288 million, representing 41 percent of the Southeast Asian total, and an archipelago stretching over 5,000 kilometers – both demand and supply factors are hindering a rebound. Consumer confidence has weakened in recent years, and unemployment rates have surged, contributing to a 3 percent decline in domestic airport passenger traffic in 2025. The economic outlook for 2026 is further clouding the situation. The Indonesian rupiah reached a historic low against the US dollar in January, creating market uncertainty and investor apprehension. This depreciation is particularly concerning for Indonesian airlines, who are facing escalating costs on top of post-COVID increases, while simultaneously grappling with weak demand. Recent data released by BPS on February 5, 2026, indicates a slight decrease in income inequality, with the Gini Ratio falling to 0.363 in September 2025, down from 0.375 in March 2025. However, the report also highlighted that income inequality remains higher in urban areas, with a Gini Ratio of 0.383, compared to 0.295 in rural areas. The province of South Papua recorded the highest Gini Ratio at 0.426, while the Bangka Belitung Islands had the lowest at 0.214. The expenditure share for the lowest 40 percent income group also saw an increase, rising to 19.28 percent in September 2025, up from 18.65 percent in March 2025. In urban areas, this expenditure share increased to 18.32 percent, while in rural areas it reached 22.09 percent. Indonesia’s economic growth in the third quarter of 2025 was reported at 5.04 percent, driven by manufacturing output and household consumption, according to BPS. However, the impact of the rupiah’s depreciation on these sectors remains to be seen. BPS continues to publish statistical data on various sectors, including population, censuses, and economic activity, in both Indonesian and English.
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