As the price of aviation turbine fuel (avtur) has surged once again, the Indonesian Ministry of Transportation has decided to raise the maximum fuel surcharge (FS) limit for scheduled domestic commercial flights from 30% to 40% of the upper-limit fare.
The Indonesian Ministry of Transportation’s Directorate General of Civil Aviation recorded the national average aviation fuel price at Rp23,315 per litre as of Tuesday, the 1st of September. This figure represents an increase of about 6.5% from the previous period.
Director General of Civil Aviation Lukman F. Laisa stated that the rise in avtur prices prompted the government to evaluate the fuel surcharge rates applicable to airlines. Following this adjustment, air transport operators are now permitted to levy a fuel surcharge of up to 40% of the upper-limit fare for economy-class passengers.
Consequently, airfares could potentially rise, particularly if airlines opt to increase the fuel surcharge (FS) component to offset rising avtur costs. However, the Indonesian Ministry of Transportation also emphasised that the 40% figure represents a maximum limit, not a mandatory rate that all airlines must apply.
“The 40% figure is a maximum limit, meaning air transport operators can still set fuel surcharges below that cap, in accordance with their business strategies and market conditions,” said Laisa in an official statement in Jakarta on the following Wednesday (the 2nd of September).
Moreover, the Indonesian Ministry of Transportation will continue monitoring and overseeing the application of tariffs by all air transport operators to ensure they remain competitive, taking into account market conditions and public purchasing power.
“The Ministry of Transportation continues to monitor aviation fuel price trends and conduct evaluations to ensure that airfare policies support national connectivity and the sustainability of the aviation industry, while also benefiting the public as users of air transport services,” Laisa added.
Despite the increase in fuel surcharges, the local press observed that, as of Friday, the 4th of September, domestic flight prices from Bali to various cities across Indonesia remain relatively stable, particularly for flights in mid-September. A different trend, however, is observed on several international routes; ticket prices from Bali to destinations such as Singapore, Malaysia, and Thailand have risen compared to the previous period. Nevertheless, airfares are subject to change at any time.