How Much Will Airfare Prices Rise After the Fuel Surcharge Increase?

The government has increased the maximum fuel surcharge or additional fuel cost on jet-engine and propeller aircraft tickets. Coordinating Minister for the Economy Airlangga Hartarto stated that the rate for jet-engine aircraft will rise from 10 per cent to 38 per cent, and for propeller-engine aircraft from 25 per cent to 38 per cent. “The effective increase is 28 per cent for jets and 13 per cent for propellers,” he said during a press conference at his office in Jakarta on Monday, 6 April 2026. Previously, the fuel surcharge was regulated under Ministerial Decree Number KM 7 of 2023, with maximum surcharges of 10 per cent for jet-engine aircraft and 25 per cent for propeller-engine aircraft. This rise in the additional fuel cost responds to the surge in avtur prices, which have exceeded 60 per cent at all airports in Indonesia. The jump in avtur prices is a consequence of soaring global crude oil prices above US$100 per barrel. Although the additional fuel cost has increased, the government is covering the Value Added Tax (VAT) of 11 per cent imposed on tickets. Additionally, import duties on aircraft parts have been lowered to zero per cent, where last year’s total revenue reached Rp 500 billion. With the VAT coverage, Airlangga said the operational burden on airlines is not excessively large. Aircraft ticket prices will also not rise by more than 15 per cent. “Therefore, for end-users, for the public, the increase is only around 9-13 per cent,” he stated. The government’s decision does not align with the request from the Indonesia National Air Carriers Association (INACA). The airlines’ association requested a 15 per cent upper limit rate and 15 per cent fuel surcharge each for jet-engine and propeller aircraft. Nevertheless, Transport Minister Dudy Purwagandhi said the tariff determination has been discussed with all airlines serving domestic flights in Indonesia. The government also considered suggestions provided by the airlines. “We are not acting unilaterally in setting the fuel surcharge increase,” he remarked on the same occasion.