Aircraft Ticket Fuel Surcharge Increased to Maximum 50 Percent

The government has set the additional fuel cost or fuel surcharge on aircraft tickets for this month at a maximum of 50 percent. Director General of Air Transport at the Ministry of Transportation (Kemenhub), Lukman F. Laisa, stated that the regulation is based on an evaluation of Avtur prices as of 1 May 2026, with an average price of Rp 29,116 per litre. Domestic airlines may apply a fuel surcharge of up to 50 percent of the upper limit tariff according to the service class group. “The implementation of the fuel surcharge may be applied by airlines starting from 13 May 2026,” Lukman said in a written statement on Thursday, 14 May 2026. In Ministerial Decree Number KM 1041 of 2026 regarding the Amount of Additional Costs (Surcharge) Due to Fuel Price Fluctuations (Fuel Surcharge) for Passenger Tariffs in Economy Class Scheduled Commercial Air Transport Domestic, the fuel surcharge percentage ranges from 10-100 percent of the upper limit tariff, adjusted to the applicable Avtur price. With this regulation, Ministerial Decree Number KM 83 of 2026 on Fuel Surcharge is revoked and no longer applies. Lukman said the fuel surcharge mechanism is regulated by the government to anticipate fluctuations in aviation fuel prices and maintain the continuity of transportation services. “The adjustment of the fuel surcharge is carried out based on the mechanism and formulation established in the regulation,” he stated. The government, according to Lukman, ensures that the implementation of this policy is measured, while still considering consumer protection, tariff affordability, and airline operational sustainability. Airlines are still required to maintain service quality despite the adjustment of additional costs due to the rise in Avtur prices. Last April, the government increased the fuel surcharge limit for jet-engine and propeller aircraft to 38 percent each. Previously, the fuel surcharge was regulated under Ministerial Decree Number KM 7 of 2023, with a maximum surcharge of 10 percent for jet-engine aircraft and 25 percent for propeller-engine aircraft. This increase is caused by the war in the Middle East, which has driven crude oil prices above US$100 per barrel. To reach public purchasing power, the government provides a subsidy of Rp 2.6 trillion for the 11 percent Value Added Tax (PPN) on aircraft tickets for two months, and import duties on aircraft spare parts are also reduced to zero percent.