Airline Costs Under Pressure, INACA Pushes for Fuel Surcharge Flexibility

JAKARTA, KOMPAS.com - The Indonesia National Air Carriers Association (INACA) has spotlighted the rise in aircraft fuel or avtur prices, along with the weakening exchange rate of the rupiah against the US dollar, which are once again pressuring the national aviation industry.

INACA Chairman Denon Prawiraatmadja called on the government to promptly adjust tariff policies.

Denon stated that avtur prices have experienced a significant surge based on the latest data.

“As of 1 May 2026, the avtur price at Soekarno-Hatta Airport was recorded at Rp 27,358 per litre, up around 16 percent compared to the April period, which was at Rp 23,551 per litre,” Denon said in an official statement on Tuesday (5/5/2026).

“The rise in avtur prices and the US dollar exchange rate has a significant impact on airline operating costs, especially amid ongoing unstable global geopolitical conditions,” Denon added.

Denon assessed that these cost pressures could disrupt the sustainability of airline operations and air transport connectivity if not addressed promptly.

INACA has submitted several proposals to the government, particularly to the Directorate General of Civil Aviation under the Ministry of Transportation.

They requested that fuel surcharge adjustments be made more flexible. This mechanism should no longer refer to the 60-day evaluation period as stipulated in KM 83 of 2026.

“We propose that fuel surcharge adjustments follow the movement of avtur prices as released by Pertamina, making it more responsive to market conditions,” Denon said.

“We request that the government consider revising the TBA in a flexible manner, following the rise in avtur prices and the movement of the US dollar exchange rate,” he continued.