Aviation Fuel Prices Surge 70%, Threatening Air Logistics Industry to Shift to Road and Sea
The Indonesian Digital Economy Logistics Association (ALDEI) has voiced concerns regarding a 70% surge in avtur prices. This situation is triggering a drastic increase in Air Waybill (SMU) tariffs and presenting challenges to national goods distribution, especially within the digital economy ecosystem.
ALDEI’s Deputy General Chairman, Jimmi Krismiardhi, explained that the rise in cargo airline operating costs directly impacts e-commerce businesses, manufacturers, and distributors who rely heavily on the speed of air deliveries.
“This avtur price surge directly increases cargo airline operating costs, which are then passed on in the form of higher SMU tariffs. This certainly affects businesses, particularly the e-commerce, manufacturing, and distribution sectors that depend on fast air shipments,” Jimmi stated in his comments on Thursday (9/4/2026).
Due to the high air freight tariffs, Jimmi predicts a massive shift in transportation mode preferences from air to road and sea. While this can reduce costs, Jimmi warns of consequences such as longer delivery times.
Furthermore, this shift is feared to cause stockpiling or new bottlenecks in road and sea routes if supporting infrastructure is not prepared promptly.
“A change in transportation mode preferences is a natural market response. However, it needs to be anticipated to avoid creating new bottlenecks in the road and sea sectors, particularly in terms of capacity, infrastructure, and distribution efficiency,” he added.
In response to the situation, Jimmi calls for constructive dialogue between businesses and the government to maintain national logistics stability. His side recommends several strategic steps, including optimising multimodal transport by integrating various modes to preserve efficiency. Then, digitalising logistics by strengthening digital systems to enhance visibility and cost efficiency.
Additionally, they request a policy evaluation on costs by reviewing logistics cost components, including avtur prices, to keep them competitive. Finally, providing incentives as an effort to stimulate the logistics sector directly impacted financially.
Jimmi emphasised that cross-sector collaboration is essential so that this energy price hike challenge can become a momentum for transforming the national logistics structure to be more adaptive.