The significant increase in aviation fuel surcharge has become one of the most popular news stories on kumparanBISNIS throughout Thursday, May 14th. Alongside this development, a major reshuffle within the Board of Directors and Commissioners at Garuda Indonesia also captured significant attention. For a more detailed overview, here’s a summary of these prominent headlines:
High Avtur Prices Lead Ministry of Transportation to Increase Fuel Surcharge Up to 100% of Upper Tariff Limit
The Ministry of Transportation (Kemenhub) has officially revised the regulations concerning fuel surcharges for economy class flights, a direct response to the substantial surge in avtur prices driven by global geopolitical tensions. This critical adjustment, formalized through Ministerial Decree No. KM 1041 of 2026, effective since May 13, 2026, supersedes the previous KM 83 of 2026. The new policy aims to provide greater flexibility for airlines in setting these additional costs.
Previously, the fuel surcharge was fixed at 38 percent for jet aircraft and 10 percent for propeller aircraft. With the introduction of this new regulation, the surcharge amount is now tiered, ranging from 10 percent up to a maximum of 100 percent of the upper tariff limit (TBA) for economy class. This percentage is dynamically determined based on the average avtur price set by fuel providers.
For instance, as of May 1, 2026, when avtur prices reached Rp 29,116 per liter, airlines were permitted to implement an additional charge of up to 50 percent of the TBA. Should avtur prices escalate further, hitting a range of Rp 45,350 to Rp 49,350 per liter, the fuel surcharge could reach the maximum 100 percent of the TBA. This strategic policy is designed to ensure the sustainability of the aviation industry amidst volatile global commodity price fluctuations.
Garuda Indonesia Reshuffles Board of Directors and Commissioners: Full List Here
PT Garuda Indonesia (Persero) Tbk (GIAA) has announced a significant restructuring of its Board of Directors and Commissioners during the Annual General Meeting of Shareholders (AGM) for the 2025 fiscal year, held on Wednesday, May 13th. The meeting officially approved the appointment of Frans Dicky Tamara as Director of Human Capital & Corporate Service, and Sugito Anjasmoro as Commissioner. These changes involve replacing previous officials, undertaken as part of a strategic effort to strengthen the company’s management structure.
This crucial management overhaul coincides with positive signals emanating from Garuda Indonesia’s financial performance in the first quarter of 2026. The national flag carrier successfully recorded a consolidated operating revenue increase of 5.36 percent, reaching USD 762.35 million compared to the same period in the previous year. Revenue from scheduled flights emerged as the primary contributor, demonstrating a robust growth of 7.36 percent to USD 648.10 million. Furthermore, the company notably reduced its net loss by approximately 45.2 percent, bringing it down to USD 41.62 million.
Glenny Kairupan, President Director of Garuda Indonesia, stated that these achievements are a strong positive indicator for the ongoing process of strengthening the company’s operational and business fundamentals. The company’s core focus remains firmly directed towards enhancing operational excellence, maintaining strict cost discipline, optimizing its flight network, and driving service transformation. The newly appointed management team is expected to accelerate the company’s turnaround phase, paving the way for more solid and sustainable performance.
Summary
The Ministry of Transportation (Kemenhub) has officially revised regulations for economy class flight fuel surcharges, responding to a significant increase in avtur prices driven by global geopolitical tensions. Under Ministerial Decree No. KM 1041 of 2026, airlines can now implement surcharges ranging from 10% up to 100% of the upper tariff limit, dynamically determined by the average avtur price. This strategic policy aims to ensure the sustainability of the aviation industry amidst volatile global commodity price fluctuations.
Concurrently, PT Garuda Indonesia (Persero) Tbk (GIAA) announced a significant reshuffle of its Board of Directors and Commissioners during its Annual General Meeting of Shareholders on May 13th. Frans Dicky Tamara was appointed Director of Human Capital & Corporate Service, and Sugito Anjasmoro as Commissioner. This management overhaul coincides with positive Q1 2026 financial performance, including a 5.36% increase in consolidated operating revenue to USD 762.35 million and a 45.2% reduction in net loss. The new management team is expected to accelerate the company’s turnaround phase towards more solid and sustainable performance.