JAKARTA - The government has reopened the opportunity for an increase in domestic airfare prices after allowing airlines to impose fuel surcharges or additional fuel costs for economy class flights.
The policy is contained in the Decree of the Minister of Transportation Number KM 1041 of 2026 which came into force as of May 13, 2026. This step was taken following the increase in jet fuel prices which as of May 1, 2026 reached an average of Rp. 29,116 per liter.
In the policy, airlines are allowed to impose a fuel surcharge of up to 50% of the upper tariff, depending on the group of flight services.
The government considers this policy necessary to maintain the sustainability of the national aviation industry amid global energy price pressures.
Director General of Air Transportation of the Ministry of Transportation, Lukman F. Laisa, said the adjustment of tariffs was carried out according to the applicable regulatory mechanism.
"The government will continue to ensure that the implementation of this policy is carried out in a measured manner while still paying attention to consumer protection, affordability of tariffs, and the sustainability of airline operations," said Lukman.
However, this policy has triggered concerns from the tourism sector, especially Bali which is highly dependent on air connectivity.
The founder of Hey Bali and Bali tourism observer, Giostanovlatto, assessed that the increase in flight costs could suppress domestic tourist movements during the mid-year holiday season.
"When tickets get more expensive, it's not only tourists who are affected, but the entire chain of the Bali community's economy," he said.
According to him, the period from May to August, which is usually the peak momentum for tourist visits, has the potential to slow down if ticket prices continue to increase.
He added that the impact was not only seen from the number of visits, but also the pattern of tourists' spending and length of stay at the destination.
On the other hand, industry players assess that the high cost of domestic tickets can reduce the competitiveness of Indonesian tourism compared to other Southeast Asian countries such as Thailand, Vietnam, and Malaysia which are considered more aggressive in offering cheap flight access.
The Ministry of Transportation stated that it would conduct periodic evaluations of the implementation of fuel surcharges to ensure that the policy was transparent and accountable.
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