The Indonesian National Air Carriers Association (INACA) has submitted a proposal to increase airline ticket ceiling prices by 15 percent. This move aims to counteract rising operational costs, particularly the significant surge in aviation fuel prices driven by geopolitical tensions and disruptions in global oil supply. The increase is also intended to hedge against fluctuations in the exchange rate, as most airline costs are dollar-denominated.
Crude oil prices have spiked from about US$70 to US$110 per barrel in March, raising fuel prices in Indonesia by approximately 34 to 48 percent compared to 2019. This surge is largely due to conflicts involving the United States, Israel, and Iran since late February 2026, which have affected global oil routes and supplies. The aviation fuel price in Indonesia now ranges between Rp14,000 and Rp15,500 per liter. INACA warns that prices could further escalate in April, aligning with global market trends.
Impacts and Industry Response
In addition to higher fuel costs, airlines are experiencing supply chain delays for aircraft spare parts, with delivery times extending from 2–3 days to 7–10 days, thereby increasing logistics expenses. To address these challenges, INACA has also proposed a 15 percent increase in fuel surcharges and has called on the government to provide relief through measures such as postponing VAT on aviation fuel and tickets and reducing airport service charges.
The Ministry of Transportation is currently reviewing these requests. Lukman F. Laisa, the Director General of Civil Aviation, stated that the government prioritizes maintaining a balance between supporting the industry's economic viability and protecting consumers. Authorities are engaging with stakeholders, including airlines, airport operators, and fuel suppliers, to evaluate the potential impacts of these adjustments and ensure the continuity of safe and affordable air transportation across the country.
