Airfare Price Hike Under Consideration

The Ministry of Transportation (Kemenhub) is considering a proposal from the Indonesian National Air Carriers Association (INACA) regarding a 15 per cent increase in the upper limit tariff (TBA) for air tickets. “In connection with the request for adjustment of the fuel surcharge submitted by INACA, the government in principle considers various aspects,” said Director General of Civil Aviation at Kemenhub, Lukman F Laisa, in Jakarta on Thursday, 26 March 2026. He mentioned several factors for consideration, including the economic condition of airlines, public purchasing power, the sustainability of the aviation industry, as well as aspects of safety, security, and service. Lukman emphasised that they understand the dynamics faced by the national aviation industry as a result of developments in the global geopolitical situation, which affect the rise in avtur prices, exchange rate fluctuations, and airline operational costs. In light of this, Lukman continued, the Directorate General of Civil Aviation at Kemenhub is also continuously coordinating with all stakeholders, including airlines, airport operators, avtur providers, and other related agencies. “To monitor the development of avtur prices and their impact on flight operations,” he said. Furthermore, Lukman stated that regarding the policy stimulus proposal also put forward by INACA, the government continues to pay attention to fiscal conditions and the interests of the wider public. He stressed that every policy taken will prioritise a balance between the sustainability of the aviation industry business and consumer protection. “Thus, air transport services remain maintained in terms of safety, security, affordability, and national connectivity,” said Lukman. Previously, INACA requested an increase in fuel surcharge and TBA for domestic flights due to global geopolitical conflicts. INACA Secretary General Bayu Sutanto said this considers the current aviation industry conditions, namely the influence of geopolitical conflicts between the United States (US) and Israel versus Iran, which make international economic conditions unconducive. “This situation has led to a rise in world oil prices and the weakening of the rupiah exchange rate against the US dollar, where both cost components significantly affect the increase in operational costs of national airlines,” said Bayu. INACA has submitted a request to the government to review and adjust, first, to increase the fuel surcharge by 15 per cent on each fuel surcharge that has been set through KM 7 of 2023 dated 10 January 2023.