Indonesian Political, Business & Finance News

Official! Increase in Upper Limit Airfare Tariff Postponed, Here's Why

| Source: CNBC Translated from Indonesian | Regulation
Official! Increase in Upper Limit Airfare Tariff Postponed, Here's Why
Image: CNBC

Jakarta, CNBC Indonesia - The Minister of Transportation (Menhub), Dudy Purwagandhi, has confirmed that there will be no increase in the upper limit tariff (TBA) for air tickets at this time.

Currently, he stated, the government is focused on maintaining public purchasing power to ensure continued access to public transportation, particularly air travel, amid the surge in global avtur costs. This follows geopolitical tensions in the Middle East stemming from the Israel-US war against Iran, which has caused global economic volatility, especially in world oil prices.

Previously, airlines under INACA requested that the government raise the fuel surcharge by 15% and the TBA by 15% for both jet and propeller aircraft.

Today, Coordinating Minister for the Economy Airlangga Hartarto announced that the fuel surcharge will be increased to an average of 38% for both jet and propeller aircraft, up from the previous 10% and 25%, due to the rise in avtur prices.

Additionally, the government has eliminated import duties on aircraft spare parts to zero percent, to maintain the competitiveness of the aircraft repair industry (MRO/maintenance, repair, and operations or overhaul).

“As I mentioned earlier, the determination of the fuel surcharge is based on our agreement with the airlines. The airlines actually requested an increase of up to around 50%,” said Dudy during a press conference on Transportation and Fuel Policies at the Coordinating Ministry for the Economy’s office on Monday (6/4/2026).

“But after we discussed and examined their respective cost positions, we concluded that a 38% increase in fuel surcharge is an ideal figure. This ensures that our aviation industry is not hit too drastically, and public purchasing power can still afford it,” he added.

Regarding the TBA increase, he further explained that it has been agreed to postpone it.

“Regarding the TBA, one of the components is avtur and exchange rates, as well as maintenance costs. As mentioned earlier, the implementation of import duties on spare parts is expected to reduce costs for airlines in the medium term,” he said.

“So, regarding the TBA, we have agreed to postpone discussions on it. What we are doing first is adjusting ticket prices based on the avtur price increase that is fluctuating in the global market. On one hand, we are safeguarding public purchasing power so that people can still access public transportation, particularly air travel, at affordable prices,” said Dudy.

According to Pertamina’s official website, official avtur prices have risen at every domestic operating airport, applicable to both domestic and international flights, effective from 1 April 2026.

At Soekarno-Hatta Airport (CGK), the avtur price for domestic flights from 1-30 April 2026 is set at Rp23,551.08 per litre. In March 2026 (1-31), it was still Rp13,656.51 per litre.

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