Indonesian Political, Business & Finance News

Fluctuations in Avtur Prices, Ministry of Transportation Adjusts Fuel Surcharge for Domestic Air Transport

| | Source: REPUBLIKA Translated from Indonesian | Regulation
Fluctuations in Avtur Prices, Ministry of Transportation Adjusts Fuel Surcharge for Domestic Air Transport
Image: REPUBLIKA

The government has established Ministerial Decree Number KM 1041 of 2026 regarding the Amount of Additional Costs (Surcharge) due to Fuel Price Fluctuations (Fuel Surcharge) for Economy Class Passenger Fares on Scheduled Domestic Commercial Air Transport. Director General of Air Transport, Lukman F. Laisa, stated that the policy responds to the increasing prices of aviation fuel (avtur), while safeguarding the continuity of the national aviation industry, with due consideration to consumer protection and the affordability of air transport fares.

“In the Ministerial Decree, the fuel surcharge amount is determined based on the average avtur price set by aviation fuel providers,” said Lukman in a written statement in Jakarta on Thursday (14/5/2026).

Lukman explained that the highest surcharge percentage ranges from 10 percent to 100 percent of the upper tariff limit, adjusted to the prevailing avtur price fluctuations. Based on the evaluation of avtur prices set by aviation fuel providers as of 1 May 2026, with an average price of Rp29,116 per litre, domestic scheduled commercial air transport business entities may apply an additional fee (fuel surcharge) of up to 50 percent of the upper tariff limit according to the service group.

“The application of the fuel surcharge may be implemented by airlines starting from 13 May 2026,” he continued.

Lukman emphasised that the fuel surcharge policy is a government-regulated mechanism to anticipate fluctuations in aviation fuel prices and maintain the continuity of national air transport services. He noted that adjustments to the fuel surcharge are made based on the mechanisms and formulations established in the regulations.

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