The Bali Observer

Monday, 21 September 2026

Indonesia lifts airline fuel surcharge ceiling on domestic flights to 40%

Indonesia’s Ministry of Transportation has raised the maximum fuel surcharge on domestic economy-class tickets from 30% to 40% of the upper fare limit, responding to higher aviation fuel prices.

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Editor: Mursyid Sonsang

· Event date: · 4 min read

Open the larger photo. Archive photo: Landscape, Tirta Gangga, Bali.
Archive photo: Landscape, Tirta Gangga, Bali. · Photo: Vyacheslav Argenberg / Wikimedia Commons, CC BY 4.0

Jakarta — — Indonesia has raised the maximum fuel surcharge that airlines may add to domestic economy-class tickets to 40 percent of the government-set upper fare limit, following a rise in aviation turbine fuel (avtur) prices. The change adjusts the ceiling on surcharges rather than imposing a flat 40 percent increase on all airfares.

According to the Ministry of Transportation, the new limit applies to scheduled domestic commercial flights and replaces the previous maximum fuel surcharge of 30 percent of the upper-limit fare.The policy is linked to higher avtur prices published by fuel suppliers from 1 September 2026, which prompted a review of allowable surcharge levels.

Director General of Civil Aviation Lukman F. Laisa has stressed that the 40 percent figure is a ceiling, giving airlines room to set lower surcharges based on their business strategy and market conditions.He also underlined that the surcharge is a separate component of the fare and does not automatically translate into a 40 percent increase in ticket prices.

Scope of the new surcharge limit

The adjustment covers economy-class passengers on domestic routes, with the surcharge calculated as a percentage of the government’s tariff upper limit for each service category.

For example, if the upper-limit fare on a route is set at Rp1 million, a 40 percent maximum fuel surcharge would allow an airline to add up to Rp400,000 as a fuel-related fee.Carriers remain free to charge less than this maximum, and they are not obliged to apply the full 40 percent on any given route.

Media reports citing the Ministry of Transportation indicate that the change was formalised through a ministerial decision identified as Keputusan Menteri Perhubungan (KM) No. 1041 of 2026, covering the cap on fuel surcharge for September 2026.

Implications for Bali-bound travellers

For passengers flying to and from Bali, the practical impact will depend on how individual airlines choose to use the higher ceiling.

Government and industry statements note that airlines may adjust fuel surcharges in response to avtur costs but are not required to raise them to the maximum level.Indonesian carrier associations have warned that ticket prices are likely to rise as surcharges increase, but the scale will vary by route and airline.

Travellers are advised to check the full fare breakdown at the time of booking, including any fuel surcharge, taxes and airport fees.Official and media guidance emphasises that the fuel surcharge should be listed as a separate item on tickets, making it possible for passengers to see how much of the total price is due to fuel costs.

Timeline and context

The government’s decision to lift the maximum surcharge to 40 percent took effect in early September 2026, following a reported average rise of about 6–6.5 percent in avtur prices compared with the previous period.

Previously, the fuel surcharge cap had been reduced to 30 percent for August 2026 before being restored to 40 percent as avtur prices climbed again.

English-language reporting has highlighted that the Ministry of Transportation views the adjustment as a way to give airlines flexibility to manage fuel-cost volatility while maintaining oversight of overall fare structures.

Passengers planning trips later in 2026, including to major tourism destinations such as Bali, are therefore likely to see some upward pressure on airfares, but not a uniform 40 percent increase across all tickets.The extent of any price changes will depend on future fuel costs and airline pricing decisions within the new regulatory limits.

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