Indonesia Aviation Crisis: Jet Fuel Prices Skyrocket 70%, Airlines Warn of Groundings

JAKARTA, Investortrust.id — Indonesia’s aviation sector is entering a state of emergency as jet fuel prices surged by an average of 70% on Wednesday (4/1/2026). In a move that sent shockwaves through the industry, PT Pertamina (Persero) adjusted domestic Avtur prices at Soekarno-Hatta International (CGK) from Rp 13,656 ($0.86) in March to Rp 23,551 ($1.48) per liter in April.

International routes faced an even steeper climb, with prices jumping 80.32% to $1.338 per liter. Industry observers note that current domestic prices are now nearly 300% higher than 2019 averages, driven largely by escalating geopolitical tensions in the Middle East.

The sudden explosion in fuel costs is a "make or break" moment for Indonesian aviation. With fuel accounting for 40% of total airline expenses, the 70% price hike effectively wipes out profit margins across the sector. If the government fails to adjust the domestic price ceiling, the country’s air connectivity—vital for the world’s largest archipelago—could collapse as carriers ground fleets to avoid hemorrhaging cash.

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Airlines at a Breaking Point

The Indonesia National Air Carriers Association (INACA) warned that the current tariff structure is no longer sustainable. "We urge the government to immediately realize an increase in the fuel surcharge and the domestic tariff ceiling (TBA)," said Denon Prawiraatmadja, Chairman of INACA.

Aviation analyst Alvin Lie took to social media to highlight the gravity of the situation, stating that airline operating costs have risen 25% to 35% overnight. Lie warned that if ticket prices remain capped, airlines will be physically unable to fund their business operations, leaving them with no choice but to stop flying.

AirAsia Indonesia Braces for Impact

PT AirAsia Indonesia Tbk (CMPP) has already begun an internal audit of its operations to stay afloat. Eddy Krismeidi, Head of Indonesia Affairs & Policy for CMPP, confirmed the carrier is evaluating its flight networks and internal efficiency to adapt to the "normalization" of high energy costs.

"We are currently monitoring the situation comprehensively and coordinating with the AirAsia Group and relevant stakeholders," Krismeidi stated. The airline is focusing on "precautionary principles" to maintain service continuity while looking for a collaborative solution with regulators.

The Government’s Dilemma

The Ministry of Transportation (Kemenhub) is caught between a rock and a hard place. While they acknowledge the "geopolitical dynamics" squeezing airlines, they must balance industry survival against the public's purchasing power.

Lukman F. Laisa, Director General of Civil Aviation, stated that the government is considering the economic viability of airlines alongside passenger affordability. For now, the ministry says it is "intensifying coordination" with airport operators and fuel providers to monitor the impact, though no official price hike has been granted yet.