Avtur Price Hike, BHS Says Airfares Can Remain Stable

Member of the Indonesian House of Representatives Commission VII, Bambang Haryo Soekartono (BHS), expressed his appreciation for the government’s approach to the aviation fuel (avtur) price increase of up to 70%, reaching Rp23,551 per litre. The government has decided to raise the fuel surcharge by 38%. To cover the cost increase, the government has issued a policy to cut VAT on air tickets and eliminate import duties on aircraft spare parts. This step is intended to lighten the burden on airlines. “Fuel accounts for about 40% of the total airline costs. That means, with a 38% increase, there will be a 13% rise in total costs. A 10-13% increase (in ticket prices) would be reasonable,” said BHS in Jakarta on Monday (27/4/2026). The Gerindra faction MP stated that the government’s move to cut VAT on tickets and eliminate import duties on spare parts can offset the avtur cost increase. “VAT on tickets is 11%. This is from revenue, not costs. So, airline revenue has already increased by 10%,” said BHS. Moreover, he continued, if the government also reduces airport tax. BHS calculated that a 50% cut in airport tax would equate to 5% of total revenue. Thus, airlines would no longer need to raise air ticket prices. “Because, with the components above, airlines’ losses due to the avtur price hike are already covered,” said BHS. According to him, the government could also encourage airport operators to better manage flights to reduce avtur usage. So far, said BHS, airlines have often been disadvantaged by landing difficulties, where they must hold and wait in queues for landing. “That can sometimes be 10% of the total flight time, so the fuel they expend is about 10%. We hope the government, which regulates air traffic control, can speed up the landing and take-off processes. No delays that drain aircraft fuel,” explained BHS.