Indonesian Political, Business & Finance News

Fuel Surcharge Rises by up to 38 Per Cent, Air Tickets Increase by Maximum 13 Per Cent

| | Source: KOMPAS Translated from Indonesian | Regulation
Fuel Surcharge Rises by up to 38 Per Cent, Air Tickets Increase by Maximum 13 Per Cent
Image: KOMPAS

JAKARTA, KOMPAS.com - The Ministry of Transportation (Kemenhub) has granted permission to domestic airlines to raise the fuel surcharge by up to 38 per cent for commercial domestic air transport.

Transport Minister Dudy Purwagandhi stated that this policy is in response to the increase in aviation fuel (avtur) prices, triggered by global geopolitical dynamics, including conflicts in the Middle East.

“In determining the fuel surcharge, we have coordinated with all airlines operating in Indonesia, particularly domestic ones. Thus, the increase has been set at 38 per cent,” Dudy said during a press conference at the Coordinating Ministry for Economic Affairs on Monday (6/4/2026).

According to Dudy, this step is necessary to maintain the operational continuity of airlines while ensuring inter-regional connectivity remains intact amid cost pressures.

Nevertheless, the government has assured that the overall increase in air ticket fares will remain limited.

On the same occasion, Coordinating Minister for Economic Affairs Airlangga Hartarto stated that the rise in domestic ticket prices will be kept within the range of 9 per cent to 13 per cent.

“To keep ticket price increases in check, the government is providing government-borne VAT of 11 per cent for domestic economy class tickets,” Airlangga said.

He explained that the government is allocating subsidies of approximately Rp 1.3 trillion per month for this policy.

If implemented for two months, the total budget disbursed would reach Rp 2.6 trillion.

Additionally, the government is offering incentives in the form of zero per cent import duties on aircraft parts to suppress airline operational costs.

Airlangga noted that in the previous year, import duty revenues from aircraft parts amounted to around Rp 500 billion.

With this policy, the government hopes to enhance the competitiveness of the aircraft maintenance, repair, and overhaul (MRO) industry, with potential economic activity of around Rp 700 billion per year.

The government emphasises that this series of policies represents efforts to balance the sustainability of the aviation industry with the affordability of ticket prices for the public amid global pressures.

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