June 4, 2026 | 09:21 pm
TEMPO.CO, Jakarta - Indonesia's Ministry of Transportation is currently reviewing the increase in the maximum airfare limit (TBA) to align with current conditions in the aviation industry. Transportation Minister Dudy Purwagandhi stated that discussions regarding the new regulation have nearly concluded and are awaiting ministerial-level discussions before being finalized."The TBA has been discussed and may only require a ministerial-level meeting in the future. This is because the TBA needs to be synchronized, and a new one will be implemented in the future. Hopefully, this can address the airlines' desires," Dudy stated after a working meeting with Commission V of the House of Representatives (DPR) at the parliamentary complex in Jakarta on Thursday, June 4, 2026.According to Dudy, the changes in TBA are expected to meet the needs of airlines that have recently faced operational cost pressures due to the increase in avtur prices and the depreciation of the rupiah. However, Dudy could not provide specific details of the TBA changes. He mentioned that current conditions in the aviation industry require attention so that airlines can operate healthily.Dudy added that the changes in TBA would still maintain a balance between the sustainability of airline operations and the public's ability to purchase air tickets. In addition to modifying the TBA, the Ministry of Transportation is preparing a new, more flexible mechanism for fuel surcharges.In this scheme, TBA will be established based on the current economic conditions. Meanwhile, the fuel surcharge can be adjusted according to changes in avtur prices.According to Dudy, this mechanism is necessary for anticipating increases or decreases in aircraft fuel prices, which can impact airline operational costs. He stated that the rupiah exchange rate is also one of the factors considered in formulating the new TBA."The exchange rate is very dynamic. Just like in the state budget, there is a reference rate. There will also be a reference rate for the TBA, and then there is a flexible fuel surcharge to anticipate increases or decreases in avtur prices," he said.However, Dudy did not specify the range of exchange rates that will be used as the basis for calculating the new fare. He emphasized that the government will consider current exchange rate conditions while still referring to the assumptions used in the state budget."Later, I will ask for the details, but of course, we will consider the current exchange rate conditions and also refer to the assumptions for the exchange rate in the state budget," he said.Read: Airline Fuel Surcharges Stay Flat Despite Avtur Drops, Says MinistryClick here to get the latest news updates from Tempo on Google News
