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Market Chatter: Indonesia Greenlights Maximum 50% Airline Fuel Surcharge

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Indonesian Transport Ministry has unleashed emergency tariff relief for its domestic aviation sector to help carriers manage rising aviation fuel costs, Jakarta Globe reported Thursday.

The move came after average aviation fuel prices rose to 29,116 Indonesian rupiah per liter. Under the revised framework, airlines are now allowed to impose fuel surcharges of up to 50% of the government's upper airfare limit, effective May 13, the report said.

Civil Aviation Director General Lukman Laisa said the adjustment is aimed at reflecting ongoing fuel price volatility while ensuring the airline industry remains financially stable. He added that the policy is meant to balance pressure on carriers with the need to protect consumers and keep fares affordable, as per the report.

Airlines must also list fuel surcharges separately on tickets to improve transparency, the news outlet said.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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