Ministry of Transportation Considers INACA's Proposal for 15% Increase in Upper Limit Airfare Prices
Jakarta (ANTARA) - The Ministry of Transportation (Kemenhub) is considering the proposal from the Indonesian National Air Carriers Association (INACA) regarding a 15 per cent increase in the upper limit tariff (TBA) for airfares.
“In connection with the request for adjustment of fuel surcharge submitted by INACA, in principle, the government is considering various aspects,” said Director General of Civil Aviation at Kemenhub, Lukman F Laisa, in his statement in Jakarta on Thursday.
He mentioned several factors that will be considered, including the economic conditions of airlines, public purchasing power, the sustainability of the aviation industry, as well as aspects of safety, security, and service.
Lukman emphasised that his side understands the dynamics faced by the national aviation industry as a result of developments in the global geopolitical situation, which affects the rise in avtur (aviation fuel) prices, exchange rate fluctuations, and airline operational costs.
In light of this situation, Lukman continued, the Directorate General of Civil Aviation at Kemenhub is also continuously coordinating with all stakeholders, including airlines, airport operators, avtur providers, and other related agencies.
“To monitor the development of avtur prices and their impact on flight operations,” he said.
Furthermore, Lukman stated that regarding the policy stimulus proposal also submitted by INACA, the government remains attentive to fiscal conditions and the broader public interest.
He stressed that every policy taken will prioritise a balance between the sustainability of the aviation industry business and consumer protection.
“So that air transport services remain maintained in terms of safety, security, affordability, and national connectivity,” said Lukman.
Previously, INACA requested an increase in fuel surcharge and TBA for domestic flights due to global geopolitical conflicts.
INACA Secretary General Bayu Sutanto said this considers the current aviation industry conditions, namely the influence of geopolitical conflicts between the United States (US) and Israel versus Iran, which has made the international economic situation unconducive.
“That condition has resulted in a rise in world oil prices and the weakening of the rupiah exchange rate against the US dollar, where both cost components significantly affect the increase in operational costs of national airlines,” said Bayu.
INACA submitted a request to the government to review and adjust, first, to raise the fuel surcharge by 15 per cent on each fuel surcharge that has been set through KM 7 of 2023 dated 10 January 2023;
Second, to raise the TBA for domestic flights by 15 per cent for jet aircraft and propeller aircraft on the TBA set through KM 106 of 2019.
In addition to adjusting the fuel surcharge and TBA amounts, INACA also requested several temporary stimulus policies (such as for Eid 2026), namely the deferral of VAT on avtur and domestic tickets, relief on airport fees or PJP4U, and the policy of rescheduling outstanding payments for airport and navigation fees to be maintained.
This request was submitted to anticipate the avtur price adjustment from Pertamina as of 1 April 2026 and to ensure business sustainability.