Ripple Effects of High Jet Fuel Prices: Limited Ticket Increases, Airline Route Adjustments, Government Intervention
JAKARTA, KOMPAS.com — The surge in aircraft fuel (avtur) prices due to geopolitical conflicts in the Middle East has triggered a chain reaction in the aviation sector. The government has increased the fuel surcharge, curbing ticket price spikes through subsidies, while airlines are adjusting routes and capacities to ensure operational continuity.
The avtur price reaching Rp 23,551 per litre at Soekarno-Hatta Airport is the main trigger. With fuel costs accounting for around 40% of total operations, pressure on airlines has intensified sharply, forcing adjustments in fares and services.
The government then set a fuel surcharge of 38% for all types of aircraft, up from the previous 10% for jet aircraft and 25% for propeller aircraft. This policy marks the starting point for adjustments but is not standalone, as it is followed by measures to mitigate impacts on society.
Through this combination of policies, the government aims to prevent sharp ticket price surges. Ticket prices are estimated to rise only in the range of 9% to 13%, lower than the potential increase without intervention.
For example, the ticket price for the Jakarta-Yogyakarta route, previously around Rp 972,780, is estimated to rise to around Rp 1.06 million to Rp 1.09 million. Meanwhile, the Jakarta to Balikpapan route, previously around Rp 2.6 million, could potentially rise to Rp 2.8 million to Rp 2.9 million.
“This policy is designed to maintain a balance between the sustainability of our aviation industry, which is affected by rising operational costs, and providing protection for public purchasing power,” said Dudy on Monday (6/4/2026).
In other words, the fare increase is not fully passed on to passengers, as part is absorbed through fiscal intervention. However, the government still provides room for airlines to maintain financial health.
Coordinating Minister for the Economy Airlangga Hartarto views this policy as also having broader impacts on the national economy. He estimates that Gross Domestic Product (GDP) output could increase by up to US$1.49 billion or around Rp 24.58 trillion.
Meanwhile, Minister of Energy and Mineral Resources Bahlil Lahadalia emphasised that the avtur price increase is part of the global market mechanism.
“Avtur prices are indeed market prices, and since this also serves global avtur refuelling, the mechanism that occurs is a market mechanism,” said Bahlil.
Amid these policies, the government continues to keep the budget deficit below 3%, even though it must bear VAT subsidies and forego potential revenue from import duties.