Airline Association Proposes 15% Increase in Upper Limit Ticket Fares
The Indonesia National Air Carriers Association (INACA) has proposed a 15% increase in the upper limit ticket fares for jet and propeller aircraft. INACA General Secretary Bayu Sutanto stated that the proposal aims to anticipate the adjustment of aviation fuel (avtur) prices by Pertamina effective 1 April 2026. “And to ensure business sustainability, safety insurance, and the availability of national air transport connectivity while maintaining high safety standards,” he said in a written statement on Wednesday, 25 March 2026.
The change is proposed by revising the upper limit fares set through Ministry of Transportation Regulation Number KM 106 of 2019. Bayu explained that the benchmark value in that regulation was an average of US$1 equating to Rp14,136, whereas it now stands at Rp17,000 per dollar, marking a 20% rise.
The situation originated from a conflict between the United States and Israel with Iran that erupted on 28 February 2026. Subsequently, access to crude oil trade from the Middle East region was disrupted due to Iran closing those waters.
Bayu noted that Indonesia’s aviation industry relies 70% on US dollar operations, while revenue is derived from the rupiah. “Thus, the rising US dollar exchange rate will increasingly burden the finances of national airlines,” he said.
Furthermore, Bayu added that global oil prices in March 2026 have risen from the previous US$70 per gallon to US$110 per gallon, a 57% increase. This naturally affects avtur price fluctuations in Indonesia; compared to 2019 when avtur was priced at Rp10,442, in March 2026 it has reached Rp14,000-15,500, a rise of 34-48%.
“Avtur prices are predicted to rise further following the oil price increase due to this global geopolitical crisis,” he stated.
Pertamina, as the avtur fuel supplier, always adjusts prices on the 1st of each month. The national airlines association predicts that avtur prices on 1 April 2026 will increase, following the elevated market prices due to the Middle East conflict.
Bayu mentioned that aircraft maintenance is also impacted by the procurement of spare parts for planes currently under maintenance (AOG parts), as supply chains are disrupted, extending delivery times from 2-3 days to 7-10 days with additional shipping cost increases. This is to ensure safety, security, and rerouted flights taking longer paths.
INACA has also proposed a 15% increase in the additional fuel surcharge based on the previously established fuel surcharges under Ministry of Transportation Regulation Number KM 7 of 2023 dated 10 January 2023. The association also requests several temporary stimuli—for instance, during Eid al-Fitr 2026—such as the deferral of avtur and domestic ticket VAT, relief on airport fees or PJP4U.
“And the policy of rescheduling outstanding payments for airport and navigation fees should be maintained,” Bayu concluded.