INACA Requests Increase in Fuel Surcharge and Upper Limit Fare for Domestic Flights Due to Geopolitical Impacts
Jakarta (ANTARA) - The Indonesian National Air Carriers Association (INACA) has requested an increase in fuel surcharges and upper limit tariffs (TBA) for domestic flight tickets due to the impact of global geopolitical conflicts.
INACA Secretary General Bayu Sutanto stated that this considers the current aviation industry conditions, influenced by geopolitical conflicts between the United States (US) and Israel versus Iran, which have made the international economic situation unconducive.
“These conditions have resulted in a rise in global oil prices and a weakening of the rupiah exchange rate against the US dollar, both of which significantly affect the increase in operational costs for national airlines,” said Bayu in a statement in Jakarta on Wednesday.
According to him, many airlines in various countries are currently adjusting operational costs by adding fuel surcharges ranging from 5-70%.
This includes Qantas from Australia; Korean Air and Asiana from South Korea; as well as Air Mauritius, Ethiopian Airlines, Kenya Airlines, and other airlines.
Bayu mentioned that they have compiled data and analyses regarding the national aviation situation affected by the geopolitical crisis, first, the increase in the US dollar exchange rate against the rupiah.
In 2019, when the upper limit tariff (TBA) was set through Ministerial Decree 106 of 2019, the average rate was 1 US dollar to Rp14,136, whereas in March 2026, it has reached an average of Rp17,000, an increase of more than 20%.
Second, the global oil price in March 2026 has risen from the previous 70 US dollars per gallon to 110 US dollars per gallon, a 57% increase. This affects fluctuations in aviation fuel (avtur) prices in Indonesia, where in 2019, avtur was priced at Rp10,442 per litre.
Meanwhile, in March 2026, it has reached Rp14,000-Rp15,500 per litre (prices vary by airport), an increase of 34-48%.
“Avtur prices are predicted to rise further following the increase in oil prices due to the global geopolitical crisis,” he said.
Third, Pertamina, as the supplier of aviation fuel (avtur), always adjusts prices on the 1st of each month.
Fourth, there is an additional operational cost for airlines flying abroad, especially to the Middle East and Europe, where existing flight routes pass through conflict areas, requiring detours with higher operational costs.
Fifth, on the other hand, due to these geopolitical conflicts, Bayu continued, the number of passengers to the Middle East, particularly for Umrah flights, has decreased.
“The same applies to tourism to Indonesia, which will also be impacted, both in terms of Western arrivals from Europe or the Middle East itself,” he added.
Sixth, from the aircraft maintenance side, it is affected by the procurement of spare parts for aircraft currently under maintenance (AOG parts), where the supply chain for spare parts is disrupted, extending delivery times from the previous 2-3 days to 7-10 days, along with increased shipping costs.
“This is to ensure safety and security, as well as longer detour flight routes,” he explained.
In relation to these conditions, INACA has submitted a request to the government to review and adjust, first, to increase the fuel surcharge by 15% on each fuel surcharge established through Ministerial Decree 7 of 2023 dated 10 January 2023;
Second, to increase the upper limit tariff (TBA) for domestic flight tickets by 15% for jet aircraft and propeller aircraft on the TBA set through Ministerial Decree 106 of 2019.
In addition to adjusting the fuel surcharge and TBA amounts, INACA also requests several temporary stimulus policies (such as for Eid 2026), namely the deferral of VAT on avtur and domestic tickets, relief on airport costs or PJP4U, and the policy of rescheduling outstanding airport and navigation fee payments to be maintained.
He added that this request is to anticipate Pertamina’s avtur price adjustment on 1 April 2026 and to ensure business sustainability, safety assurance, and the availability of national air transport connectivity while maintaining high safety standards.