Rise in Jet Fuel Prices and Rupiah Weakness Shake Aviation Industry

The aviation industry in Indonesia is increasingly shaky. Soaring jet fuel (avtur) prices and the weakening exchange rate of the rupiah against the US dollar are the causes. This situation was revealed by Denon Prawiraatmadja, Chairman of the Indonesia National Air Carriers Association (INACA). “The financial condition of airlines is once again under pressure due to the rise in avtur prices and the US dollar exchange rate, which could disrupt air transport connectivity, related aviation sectors, and the national economy,” Denon stated on Tuesday (5/5/2026), as reported by detikFinance. Denon revealed that the increase in avtur prices is impacting the aviation industry, particularly the financial condition of each company, both national and international airlines. He is concerned that this could disrupt national aviation connectivity. According to Denon, Pertamina raised avtur prices again as of 1 May 2026. For example, at Soekarno-Hatta Airport alone, the avtur price for the period 1-31 May 2026 is Rp 27,358 per litre, up 16% from the April price. “The price rose 16% from the period of 1-30 April 2026, which was Rp 23,551 per litre,” Denon explained. Meanwhile, the rupiah’s exchange rate against the US dollar is also weakening further, adding to the burden on the airline industry, even though much of the aircraft operations are funded in US dollars. Denon explained that as of 4 May 2026, the US dollar rate is Rp 17,425, or up 2.5% compared to 1 April 2025, which was Rp 17,017.