Minister Awaits Stable Avtur Prices Before Enforcing New Airfare Ceiling

Minister of Transportation Dudy Purwagandhi has announced that the government has formulated a new Tariff Ceiling (TBA) for airline tickets, which will be enforced once the price of avtur and global geopolitical conditions return to stability.

“Regarding the TBA, it has now been formulated and perhaps when the time comes, once fuel prices have stabilised again, we will enforce the TBA with the new formula,” Dudy said during a media briefing in the Kebayoran Baru area, South Jakarta, on Friday, 26 June 2026.

He stated that the Ministry of Transportation has completed the formulation of the new tariff ceiling amount and is now only waiting for the right momentum to implement it for all airlines. However, Dudy did not elaborate further on the details of the latest TBA amount.

“I think the figure has been formulated, we are just waiting for the momentum when fuel prices are relatively stable,” he said.

Dudy emphasised that the policy was drafted by reviewing the tariff components previously used when the ceiling was last set in 2019. An evaluation was carried out on various components of flight operational costs so that the new tariff amount better reflects current industry conditions and the development of air transportation costs. The government considers that changes in various flight cost components since 2019 provide an important basis for adjusting the tariff ceiling policy to be more relevant.

Besides considering avtur prices, the government is also closely observing global geopolitical developments that affect fluctuations in world aviation fuel prices. Dudy acknowledged that the Ministry of Transportation has also seen a downward trend in global avtur prices, so the opportunity to enforce the new tariff ceiling is increasingly open if stability is maintained.

The government hopes that the latest tariff ceiling policy can maintain a balance between the public’s interest in obtaining affordable services and the sustainability of the national aviation industry.

“We see that world fuel prices have started to decline, and if global geopolitical conditions also begin to improve, we will enforce the new upper and lower tariff limits,” he said.

Currently, the provisions regarding the TBA for airline tickets still refer to the Minister of Transportation Decree Number 106 of 2019 concerning the Tariff Ceiling for Economy Class Passengers of Scheduled Domestic Commercial Air Transport.