Indonesia Raises Domestic Flight Fuel Surcharge Cap to 40%

Indonesia has raised the ceiling on fuel surcharges for scheduled domestic flights to 40% of the applicable economy-class fare limit, giving airlines more room to respond to higher aviation fuel prices.

The Transportation Ministry increased the maximum from 30% after a regular review of domestic airfares and surcharge levels. The review uses aviation fuel prices set by suppliers, including the national average and the price range established under regulations.

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The 40 percent is the maximum limit, so airlines can still set the fuel surcharge below that level based on their business strategies and market conditions.

As of Sept. 1, the national average jet fuel price stood at Rp23,315 ($1.40) per liter, about 6.5% higher than in the previous period. Airlines can apply the full surcharge or set a lower amount depending on their business strategies and market conditions.

Director General of Air Transportation Lukman F. Laisa said the ministry would continue monitoring fares across airlines. The checks will cover surcharge levels, changes in aviation fuel prices and whether airlines list the surcharge separately on passenger tickets. The ministry said it aims to balance fuel costs, airlines’ operational sustainability and passengers’ interests while keeping fares competitive and consistent with consumers’ purchasing power.

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It is also intended to provide benefits to the public as users of air transportation services.