Minister and KAI Boss Summoned by Prabowo to the Palace, What's Happening?

President Prabowo Subianto summoned Minister of Transport Dudy Purwagandhi and President Director of PT Kereta Api Indonesia (KAI) Persero Bobby Rasyidin to the State Palace on Thursday. Based on monitoring, they arrived around 12:30 WIB.

Regarding the meeting agenda, Dudy stated the President enquired about progress related to the Ministry of Transport. He explained that he had prepared all reports concerning the ministry’s work progress, including the government’s plan to revise the Upper Tariff Limit (TBA) for airline tickets, a process currently nearing completion.

According to Dudy, the decision to increase the TBA also awaits the President’s decision. The discussion regarding the new TBA has been finalised and is now only awaiting a ministerial-level meeting before being formally enacted.

The new policy is expected to address the needs of airlines that have recently faced operational cost pressures due to global conditions and the weakening of the rupiah exchange rate. Although details of the increase amount have not been specified, Dudy emphasised the government wants to accelerate the regulation’s completion, noting the aviation industry requires attention to continue operating healthily.

The statement increasingly opens room for airlines to raise ticket prices once the new TBA is issued. However, the government claims it continues to strive to maintain a balance between the interests of airlines and public purchasing power.

Dudy also revealed the new scheme being prepared covers not only changes to the TBA but also a more flexible fuel surcharge (FS) mechanism. The TBA will be set based on current economic conditions, while the fuel surcharge can be adjusted following spikes or drops in avtur prices.

This signal of a TBA increase emerged amidst a government policy that had previously opened room for ticket price hikes through fuel surcharge adjustments. The Ministry of Transport, through Ministerial Decree Number KM 1041 of 2026, has established a fuel surcharge policy for domestic flights in response to the surge in avtur prices. The regulation, effective since 13 May 2026, allows airlines to impose a fuel surcharge with a maximum percentage ranging from 10% to 100% of the Upper Tariff Limit. Based on the avtur price evaluation as of 1 May 2026, which reached Rp29,116 per litre, airlines are permitted to impose a maximum fuel surcharge of 50% of the TBA according to their respective service groups.