Indonesia Allows Airlines to Raise Fuel Surcharge to 50% of Fare Ceiling
Jakarta. The Transportation Ministry has adjusted the fuel surcharge mechanism for domestic scheduled commercial flights after average aviation fuel prices climbed to Rp 29,116 ($1.66) per liter.
Under a Transportation Ministry regulation that took effect on May 13, 2026, airlines are now allowed to impose fuel surcharges of up to 50% of the government’s upper airfare limit, depending on service category.
Civil Aviation Director General Lukman Laisa said the adjustment was introduced in response to fluctuations in aviation fuel prices while also helping maintain the sustainability of Indonesia’s airline industry.
Under the regulation, the surcharge level is determined based on average aviation fuel prices set by fuel suppliers.
Lukman said the fuel surcharge policy is part of an existing government mechanism designed to anticipate volatility in aviation fuel costs without neglecting consumer protection and airfare affordability.
“The government is ensuring that implementation of this policy remains measured while still taking into account the operational sustainability of national airlines,” Lukman said in a statement.
Airlines are also still required to maintain service quality despite the increase in additional operational costs resulting from higher fuel prices.
Under the policy, carriers must separately display the fuel surcharge component on passenger tickets rather than combining it with the base fare.
Earlier in April 2026, the government approved a fuel surcharge of 38% for domestic airlines following increases in aviation fuel prices. The approved figure at the time was lower than the 50% surcharge requested by airline operators.
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