Transport Minister Prepares New Upper Fare Limit for Plane Tickets
The Ministry of Transportation is currently assessing an increase in the upper fare limit (TBA) for aircraft tickets to adjust to the current conditions of the aviation industry. Minister of Transportation Dudy Purwagandhi stated that discussions regarding the new regulation are nearly complete and are awaiting ministerial-level deliberation before being finalised.
“The TBA has been discussed and may only require a meeting at the ministerial level. Because this involves the synchronisation of the TBA, a new upper fare limit will be implemented in the future. The hope is that this can address the needs of airlines,” said Dudy following a working meeting with Commission V of the House of Representatives (DPR) at the parliamentary complex in Jakarta on Thursday, 4 June 2026.
According to Dudy, the changes to the TBA are expected to address the needs of airlines, which have recently faced operational cost pressures due to rising aviation fuel (avtur) prices and the depreciation of the Rupiah. However, Dudy could not yet provide specific details regarding the changes to the TBA. He noted that the current state of the aviation industry requires attention to ensure that airlines can operate healthily.
Dudy added that the changes to the TBA will maintain a balance between the business sustainability of airlines and the public’s ability to afford plane tickets. In addition to altering the TBA, the Ministry of Transportation is also preparing a new mechanism regarding fuel surcharges that allows for greater flexibility.
Under this scheme, Dudy explained, the TBA will be set based on current economic conditions, while the fuel surcharge can be adjusted to follow changes in aviation fuel prices. According to Duduly, this mechanism is necessary to anticipate surges or drops in aircraft fuel prices that could affect airline operational costs. He also noted that the Rupiah exchange rate is one of the factors being considered in the formulation of the new TBA.
“The exchange rate is very dynamic. Just as in the State Budget (APBN), there is a benchmark rate. In the TBA, there will also be a reference exchange rate, alongside a flexible fuel surcharge to anticipate increases or decreases in aviation fuel prices,” he said.
Nevertheless, Dudy has not yet detailed the range of exchange rates that will be used as the basis for calculating the new tariffs. He emphasised that the government will consider current exchange rate conditions and continue to refer to the assumptions used in the State Budget.
“I will ask for the details later, but certainly, we are looking at current exchange rate conditions and also referring to the exchange rate assumptions in the APBN,” he concluded.