INACA Applauds Government’s Fuel Surcharge Relaxation

JAKARTA, Jakartaweekly.com – The Indonesia National Air Carriers Association (INACA) has welcomed the government’s move through the Indonesian Ministry of Transportation to issue Transportation Ministerial Decree No. KM 1041 of 2026 concerning additional charges (fuel surcharge) due to fuel price fluctuations for scheduled international commercial economy-class air passenger fares.

The new regulation revises KM 83 of 2026 following an evaluation of rising aviation fuel prices.

INACA Chairman Denon Prawiraatmadja said the association appreciates the government’s swift response in mitigating the impact of rising aviation fuel prices on national airlines amid global geopolitical dynamics.

“We would like to express our gratitude to the Government, particularly the Ministry of Transportation, for quickly taking mitigation measures for the national airline business affected by rising aviation fuel prices related to global geopolitics,” Denon said in an official statement on Thursday, May 14, 2026.

According to Denon, Indonesia is among the countries that responded quickly to the impact of global geopolitical tensions, in line with measures taken by the governments of Vietnam, Thailand, and the Philippines, helping minimize the impact on the national economy.

He added that the more flexible regulation would make it easier for airlines to determine fuel surcharges and airfare pricing.

“This will also allow the public to obtain more flexible ticket prices, enabling the aviation industry to grow further and support national economic growth,” he said.

Under KM 1041 of 2026, which took effect on May 13, 2026, fuel surcharge rates are determined in tiers based on aviation fuel prices set by aviation fuel providers. The validity period of the policy will later be determined by the Directorate General of Civil Aviation.

The regulation stipulates fuel surcharge rates ranging from 10 percent to 100 percent of the upper-limit economy-class fare, depending on the type of airline service and the average aviation fuel price.

In addition, fuel surcharges must be listed separately from the base fare on tickets and are exclusive of Value Added Tax (VAT). Airlines are also required to maintain service quality in accordance with their respective service categories.

With the enactment of KM 1041 of 2026, KM 83 of 2026 is officially revoked.

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