Indonesia Cuts Airline Fuel Surcharge Cap as Avtur Prices Fall

Indonesia's Ministry of Transportation announced that, following a drop in the national average price of aviation turbine fuel (avtur) to Rp 21,892 per litre on 1 August 2026, the maximum fuel surcharge that airlines may apply to scheduled domestic flights will be limited to 30 % of the upper fare limit. Director General of Air Transport Lukman Laisa said the adjustment aims to keep ticket prices affordable for passengers while preserving airline operational sustainability. The ministry will continue to monitor avtur price movements and airline pricing practices, ensuring transparency and compliance with the 2026 regulation (KM 1041). Airlines retain flexibility to set fares below the new ceiling based on their business strategies.