Businessman Reveals Triggers for High Domestic Flight Costs
Chairman of the Indonesian Logistics and Forwarder Association (ALFI), Akbar Djohan, stated that the rise in avtur prices due to the conflict in the Middle East is impacting the increased costs of passenger and cargo flights. However, even without a war, domestic flight tickets have long been expensive.
“If we’re honest, let alone because there’s already a war, even without a war, the cost of domestic passenger flights is still the highest in the world,” said Akbar at the Ministry of Economy’s office in Jakarta on Thursday, 9 April 2026.
The logistics entrepreneur assessed that the high price of plane tickets indicates that domestic aviation is inefficient. “There is inefficiency in operational aspects that must be scrutinised,” he said.
The President Director of PT Krakatau Steel (Persero) Tbk elaborated that the contribution of avtur fuel to airline operational costs is around 40 percent. However, that does not mean there are no other factors that can be made more efficient.
Akbar supports the government’s efforts to curb the rise in avtur costs. Nevertheless, the high cost of domestic flights needs to be evaluated. “This serves as a mirror for us to provide competitive services to the public,” he said.
The government is undertaking several measures to dampen the high price of plane tickets amid the surge in avtur prices. One of them is providing subsidies for domestic flight tickets amounting to Rp 2.6 trillion in April and May 2026.
The aim is to maintain people’s purchasing power and ensure the continuity of the aviation industry. “The subsidy provided by the government is around Rp 1.3 trillion per month, so if we prepare for 2 months, it’s 2.6 trillion,” said Coordinating Minister for the Economy Airlangga Hartarto in Jakarta on Monday, 6 April 2026.
To support airlines, the government is also raising the upper limit of the fuel surcharge to 38 percent. Fuel surcharge is an additional fee charged by airlines or logistics companies to consumers to cover the difference in cost increases due to the surge in fuel prices.
Previously, the maximum fuel surcharge regulation for jet-engine aircraft was 10 percent and 25 percent for propeller-engine aircraft. In addition, the government has exempted import duties on aircraft parts.