Indonesia Allows 50% Airfare Fuel Surcharge for Domestic Airlines

9 hours ago 13

TEMPO.CO, Jakarta - Indonesia has greenlit airlines to impose a fuel surcharge of up to 50 percent after average aviation fuel prices climbed to Rp29,116 per liter, according to Aviation DG at the Ministry of Transportation, Lukman F. Laisa.

Domestic airlines can apply up to 50 percent fuel surcharge based on the upper airfare limit based on service category. "The fuel surcharge policy is enforced starting May 13, 2026," Lukman said in a written statement on Thursday, May 14, 2026.

In Minister of Transportation Decree Number KM 1041 of 2026 concerning fuel surcharges for economy class passengers, the fuel surcharge percentage ranges from 10-100 percent of the upper limit tariff, adjusting to the applicable jet fuel prices.

With this regulation in place, Minister of Transportation Decree Number KM 83 of 2026 concerning Fuel Surcharge is revoked and no longer valid.

Lukman stated that the government has regulated the mechanism of fuel surcharges to anticipate fluctuations in aviation fuel prices and sustain transportation services. "Fuel surcharge adjustments are made based on mechanisms and formulas specified in the regulations," he said.

Lukman added that the government ensures a measured implementation of this policy while still considering consumer protection, fare affordability, and airline operational sustainability. Airlines are also obligated to maintain service quality despite the additional cost adjustments due to the rise in jet fuel prices.

In April, the government adjusted the fuel surcharge to up to 38 percent for domestic airlines due to the Middle East conflict that sent crude oil prices surging above US$100 per barrel.

To support purchasing power, the government provided Rp2.6 trillion in subsidies for an 11 percent Value Added Tax (VAT) on airfare for two months and waived import duty on aircraft spare parts.

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