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JAKARTA — Indonesia’s Ministry of Transportation has confirmed that domestic airline ticket prices are poised to increase following a sharp rise in aviation fuel (avtur) costs.
The government has authorized carriers to impose fuel surcharges of up to 50 percent of the upper fare limit, a move officials say is necessary to safeguard airline operations while maintaining consumer protection.
Rising Fuel Costs Trigger Policy Shift
The Ministry announced that effective May 13, 2026, airlines may apply surcharges on economy-class domestic flights.
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This follows a steep climb in avtur prices, which reached Rp 29,116 per liter on May 1, 2026, significantly raising operational expenses.
Under Ministerial Decree KM 1041/2026, airlines are permitted to impose surcharges ranging from 10 to 100 percent of the upper fare limit, depending on fuel price fluctuations.
However, the government capped the surcharge at 50 percent for domestic scheduled flights to prevent excessive burdens on passengers.
Balancing Viability and Affordability
Transportation officials emphasized that the surcharge policy is designed to strike a balance between airline sustainability and passenger affordability.
“The surcharge is not mandatory but optional, and airlines must implement it responsibly,” the Ministry stated.
The government will monitor compliance closely, ensuring that carriers do not exploit the regulation to inflate fares beyond reasonable levels.
Authorities also underscored that service quality must remain consistent despite rising costs.
Economic Pressures Intensify
The fare adjustment comes amid broader economic challenges.
Global oil prices have surged, while the rupiah’s depreciation has magnified the cost of imported fuel.
Economist Yusuf Rendy Manilet of CORE Indonesia described the situation as a “double burden” for airlines.
“Higher global oil prices combined with a weaker rupiah leave carriers with little choice but to pass on costs to consumers,” he explained.
This dynamic not only affects domestic travel but also has implications for hajj pilgrimages and international carriers operating in Indonesia, where fuel costs are a critical component of ticket pricing.
Impact on Travelers
Passengers should brace for higher fares across domestic routes, particularly long-haul flights where fuel consumption is greater.
Airlines may also adjust flight schedules or reduce capacity to manage expenses.
For many Indonesians, the increase could reshape travel habits, with some opting for alternative modes of transportation or limiting discretionary travel.
The policy is expected to ripple across tourism, business travel, and regional connectivity.
The trajectory of domestic ticket prices will depend heavily on global oil markets and the rupiah’s stability.
If fuel prices remain elevated, surcharges could persist throughout 2026, potentially reshaping Indonesia’s aviation landscape.
For now, the Ministry insists that the surcharge mechanism is a temporary safeguard, designed to keep airlines afloat while protecting passengers from unchecked fare hikes.
