The Indonesian Ministry of Transportation has officially issued new regulations regarding the reduction of aviation fuel (avtur) prices, effective as of June 1, 2026. According to the Decree of the Director General of Civil Aviation Number AU.005/2/7/DRJU.DAU/2026, the government has set the average national price for aviation fuel at Rp 26,089 per liter.
Despite the decrease in fuel costs, the Ministry has decided to maintain the maximum fuel surcharge limit for domestic scheduled commercial airlines. Carriers are permitted to charge up to 50 percent of the upper limit tariff for economy class tickets, a figure that remains unchanged from the May 2026 period, when the average fuel price sat at Rp 29,116 per liter.
Director General of Civil Aviation Lukman F. Laisa confirmed that airlines may continue to apply this surcharge for economy class passengers. “This surcharge can be applied starting June 1, 2026. With the issuance of this letter, our previous directive, Number AU.005/2/3/DRJU.DAU/2026 dated May 14, 2026, is now revoked and considered invalid,” Lukman stated on Tuesday, June 2, 2026.
While the regulation is clear, the Ministry of Transportation has yet to determine whether this fuel price reduction will lead to lower airfares for passengers. The government is currently conducting a thorough review to analyze the potential impact on ticket pricing. Endah, the spokesperson for the Directorate General of Civil Aviation, noted that calculations are still underway and findings will be released to the public once the assessment is finalized.
This policy adjustment follows a roughly 10 percent reduction in aviation fuel prices implemented by PT Pertamina Patra Niaga, effective June 1, 2026. Across several key aviation fuel terminals, prices have seen a notable decline. For instance, at the Soekarno-Hatta Aviation Fuel Terminal, prices dropped from Rp 24,580 to Rp 22,190 per liter. Similar reductions were seen in Ngurah Rai (from Rp 26,190 to Rp 23,480 per liter) and Kualanamu (from Rp 25,720 to Rp 23,090 per liter).
Corporate Secretary of Pertamina Patra Niaga, Roberth MV Dumatubun, explained that these price adjustments follow established mechanisms based on the Mean of Platts Singapore (MOPS), the primary international benchmark for the regional jet fuel market. “When global energy prices move downward, this adjustment is reflected in our domestic avtur prices according to the existing formula,” Roberth said in a written statement on June 1, 2026.
Pertamina hopes that this price relief will help airlines manage operational costs, thereby fostering a healthier domestic aviation environment. Furthermore, more competitive fuel prices are expected to support the growth of national tourism, improve regional connectivity, and stimulate economic activity across the country. Regarding international flights, Pertamina confirmed that prices will remain subject to regional market competition, though ensuring stable supply for domestic aviation remains the company’s top priority.
Summary
The Indonesian Ministry of Transportation has reduced the national average aviation fuel price to Rp 26,089 per liter, effective June 1, 2026. Despite this decline in fuel costs, the government has decided to keep the maximum fuel surcharge for domestic economy class tickets at 50 percent of the upper limit tariff. This policy remains consistent with the guidelines established in May 2026, even though international fuel benchmarks have dropped by approximately 10 percent.
The Ministry is currently conducting a thorough review to determine if these lower fuel costs will lead to a reduction in overall passenger airfares. Pertamina Patra Niaga, which implemented the price cuts based on the Mean of Platts Singapore benchmark, hopes the adjustment will help airlines manage operational expenses and boost national tourism. Official findings regarding the potential impact on final ticket prices are expected to be released once the government’s assessment is finalized.