Brace Yourselves: Airfare Prices Set to Rise by 50%, Here's Why

Jakarta, CNBC Indonesia - Domestic airfares could potentially rise by up to 50%. The Ministry of Transportation (Kemenhub) has set a policy to adjust the additional fuel surcharge for economy class passenger fares on scheduled domestic commercial air transport. This step is outlined in Ministerial Decree Number KM 1041 of 2026 to address fluctuations in domestic avtur prices. Under the new regulation, the highest surcharge percentage is set between 10% and 100% of the Upper Fare Limit (TBA). The implementation of this additional fee has been applied by airlines starting from 13 May 2026. Director General of Air Transport Lukman F. Laisa explained that the policy was taken to safeguard the continuity of the national aviation industry amid rising fuel prices. “The fuel surcharge adjustment is carried out based on the mechanism and formulation established in the regulation,” he stated in an official remark on Thursday, published on Friday (15/5/2026). “The government continues to ensure that the implementation of this policy is measured, while still considering consumer protection, fare affordability, and the operational sustainability of airlines,” he added. The amount of the additional fee will be periodically evaluated following the average avtur price set by aviation fuel providers. Kemenhub notes that the evaluation as of 1 May 2026 shows the current average avtur price at Rp 29,116 per litre. Under these conditions, scheduled domestic airlines are permitted to apply a maximum fuel surcharge of 50% of the upper fare limit according to their respective service groups. Airlines are still required to maintain service quality to the public despite the fee adjustment due to rising avtur prices. Airlines are obligated to list this additional fee component separately from the base fare (basic fare) on passenger tickets. This is done to ensure price information transparency to the public in accordance with applicable laws and regulations. Kemenhub, through the Directorate General of Air Transport, assures ongoing supervision and evaluation of this policy’s implementation. With the enactment of KM 1041 of 2026, the previous regulation, KM 83 of 2026 on Fuel Surcharge, is revoked and no longer valid.