Relaxation of Fuel Surcharge: Airline Association Says Air Ticket Prices Can Be More Flexible
Relaxation of Fuel Surcharge: Airline Association Says Air Ticket Prices Can Be More Flexible
- VIVA.co.id/Mohammad Yudha Prasetya
Jakarta, VIVA – Chairman of the Indonesian National Air Carriers Association (INACA), Denon Prawiraatmadja, has expressed appreciation for the Ministry of Transportation’s issuance of the Minister of Transportation Decree No. KM 1041 of 2026.
This decree concerns the Amount of Additional Costs (Surcharge) Caused by Fluctuations in Fuel Prices (Fuel Surcharge) for Passenger Fares in the Economy Class of Scheduled International Air Transport.
This new regulation is an adjustment to KM 83 of 2026, following an evaluation of the increase in aviation fuel prices.
“We would like to thank the Government, in this case the Ministry of Transportation, for quickly taking mitigating measures for the national airline industry, which has been affected by the increase in aviation fuel prices related to global geopolitics,” said Denon in a statement on Friday, May 15, 2026.
According to him, the Indonesian government is among the fastest, along with the governments of Vietnam, Thailand, and the Philippines, in responding to the impact of global geopolitics, thus preventing a significant impact on the national economy.
He hopes that with the new, more flexible regulations, airlines will be able to more easily determine fuel surcharges and ticket prices.
“This will also allow the public to get more flexible ticket prices so that the aviation industry can develop further and support the growth of the national economy,” said Denon.
Based on the decree, which came into effect on May 13, 2026, the amount of the fuel surcharge is tiered based on the price of fuel (avtur) issued by the aviation fuel provider, and the validity period will be determined by the Director General of Air Transportation.
The fuel surcharge is set in stages from 10-100 percent of the Upper Fare Limit (TBA) for economy class, based on the type of airline service and based on the average price of avtur set by the fuel provider.
The fuel surcharge must be listed as a separate component of the base fare on the ticket and does not include Value Added Tax. Airlines are also required to maintain service quality according to their service group.
With the enactment of this decision, KM 83 of 2026 is declared no longer valid.