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TEMPO.CO, Jakarta - The Chair of the Indonesian Empowered Consumer Forum, Tulus Abadi, urged the government to eliminate value-added tax (VAT) on airline tickets following the increase in fuel surcharge by airlines. This step is considered crucial to prevent the full burden of ticket price hikes from falling on passengers.
Previously, the Directorate General of Civil Aviation of the Ministry of Transportation set a maximum 50 percent increase in fuel surcharge from the Upper Limit Rate (TBA) through the Minister of Transportation Decree No. KM 1041 of 2026. The policy came into effect on May 13, 2026.
Tulus acknowledged that the increase in the fuel surcharge is unavoidable due to the sharp rise in Avtur prices caused by global geopolitical tensions. He stated that Avtur accounts for up to 40 percent of airlines' operational costs, making fare adjustments necessary to ensure the sustainability of the aviation industry.
On the other hand, however, the increase in fuel surcharges is expected to raise airline ticket prices by at least 15 percent. Tulus noted that this situation would reduce the public's purchasing power and decrease their interest in air travel.
Therefore, Tulus urged the government to prepare mitigation measures to ensure that the policy remains fair to consumers. One of the suggested measures is to offer discounts on ticket fares by reducing or eliminating the current 11 percent VAT on airline tickets.
"This is to make the policy more equitable and not unfairly burden air passengers," Tulus said in a written statement on Friday, May 15, 2026.
Additionally, he emphasized the importance of the Ministry of Transportation tightening supervision of airlines to prevent them from exceeding the maximum fuel surcharge limit. In the event of violations, the government could impose administrative sanctions, including the suspension of flight routes.
Tulus also stressed the importance of monitoring the quality of airline services, particularly flight punctuality or on-time performance (OTP). He argued that any increase in costs must be balanced by improvements to passenger services.
He also urged airlines to streamline operational costs to prevent excessive fare increases that would burden the public. On the other hand, Tulus pressed the government to provide special support for aviation in frontier, outermost, and underdeveloped (3T) regions, as air transportation in these areas often serves as the sole mobility access for the local populace.
Previously, the Director General of Civil Aviation, Lukman F. Laisa, stated that the fuel surcharge policy is based on government-regulated mechanisms to anticipate Avtur price fluctuations and ensure the sustainability of the national aviation industry.
According to Lukman, the government will continue to oversee and evaluate the implementation of the policy to ensure transparency, accountability, and consideration of the interests of air transportation service users.
"The government continues to ensure that the implementation of this policy is carried out in a measured manner while still considering consumer protection, fare affordability, and the operational sustainability of airlines," Lukman said.
Read: Indonesia Allows 50% Airfare Fuel Surcharge for Domestic Airlines
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