March 31, 2026 | 03:31 pm
TEMPO.CO, Jakarta - PT Garuda Indonesia (Persero) Tbk is taking several steps to mitigate the impact of fluctuating avtur prices caused by conflicts in the Middle East. Garuda Indonesia's Vice President Director, Thomas Oentoro, said that the efforts include optimizing fuel management and operational cost efficiency.
"This is an effort to maintain balance against the potential performance pressure due to the increase in avtur prices," he said in a written statement on Tuesday, March 31, 2026.
These steps are also aimed at maintaining a balance between efficiency, cost structure resilience, liquidity, and operational sustainability. Evaluation of the mitigation is carried out continuously as a wise and adaptive response to the current dynamics of the aviation industry.
Thomas stated that management will consider steps that need to be implemented continuously, focusing on cost control and optimizing company cash flow. This is also in line with the characteristic of fuel prices as one of the largest cost components in the operational cost structure.
"From an operational perspective, Garuda Indonesia will continue to ensure that the community's connectivity needs are optimally met," he said.
Internally, Thomas said that the management will strengthen consolidation with all employees, including subsidiaries. Furthermore, Garuda views, the key to facing the current situation, is strengthening the industry ecosystem through closer cooperation with various parties.
"Closer collaboration and synergy with stakeholders in the national aviation sector are key factors in maintaining aviation industry resilience in the midst of current global pressure," said Thomas.
Previously, the Indonesia National Air Carriers Association (INACA) proposed a 15 percent increase in the upper limit of ticket prices for jet and propeller aircraft to the Ministry of Transportation. They also proposed increasing the fuel surcharge by 15 percent for each type of aircraft.
INACA Secretary General Bayu Sutanto said that global oil prices as of March 2026 had risen from US$70 per gallon to US$110 per gallon, or a 57 percent increase. This affects the fluctuation of avtur prices in Indonesia. In 2019, avtur prices were Rp10,442, and by March 2026, they had reached Rp14,000-15,500, an increase of 34-48 percent.
"The price of avtur is predicted to rise again following the increase in oil prices due to the global geopolitical crisis," he said in a written statement on Wednesday, March 25, 2026.
Bayu said that 70 percent of the national aviation industry's operations use the U.S. dollar, while revenue comes from the rupiah. However, the rupiah's exchange rate has weakened since the upper-limit tariff was applied in 2019. The assumption was that US$1 would be worth Rp14,136, but by March 2026, it would be worth Rp17,000, a 20 percent increase.
As a result, operational costs are increasing, and spare part prices are also rising due to the weakening exchange rate. INACA also requested several temporary stimulus measures, such as during Eid 2026, namely a postponement of avtur and domestic ticket VAT, as well as airport fee waivers.
Read: Danantara: Garuda Indonesia Recovery Emerging in Early 2026
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