Garuda Indonesia will raise fares by up to 13% and apply a fuel surcharge of up to 38%, after the Indonesian government nearly quadrupled the surcharge ceiling in response to soaring jet fuel costs.
The changes, effective from early April 2026, follow a roughly 70% spike in domestic jet fuel prices triggered by the closure of the Strait of Hormuz during the US-Iran conflict.
How Much More You’ll Pay Now
On 8 April 2026, Garuda Indonesia President Director Glenny Kairupan confirmed the airline will raise ticket prices in line with the government’s new fuel surcharge policy.
Here’s how the combined increases break down for passengers:
- Fuel surcharge: Previously capped at 10% of the base fare for jet aircraft, now up to 38% — a nearly fourfold increase
- Base fare increase: Airlines can raise economy-class ticket prices by 9–13%, depending on the route
- Combined effect: A domestic ticket that cost Rp 1,000,000 last month could now cost approximately Rp 1,200,000–1,500,000 after both the fare hike and surcharge
Government VAT Relief: A Partial Offset
There is a silver lining. The Indonesian government is absorbing the 11% VAT on domestic economy-class airfares, softening the blow for travellers.
According to Bloomberg, the government has allocated Rp 2.6 trillion (approximately US$152.7 million) for this VAT stimulus over an initial two-month period.
The measure was announced by Coordinating Minister for Economic Affairs Airlangga Hartarto, who said the policy will be reviewed after two months. The government has also eliminated import duties on aircraft spare parts to further reduce airline operating costs.
Without the VAT relief, total ticket prices would have climbed even higher; the 11% tax absorption partly offsets the combined effect of the fuel surcharge and fare cap increases.
What This Means for GarudaMiles Members
Fuel surcharges do apply to award ticket redemptions.
When you redeem GarudaMiles for an award ticket, you still pay applicable airport taxes, government taxes, insurance fees, and fuel surcharges in Indonesian Rupiah.
According to Garuda Indonesia’s GarudaMiles page, all carrier-imposed charges — including the higher fuel surcharge — are passed through to award bookings.
If you were planning to redeem miles for domestic flights, check the total taxes and surcharges before confirming your booking, as the cash component may be significantly higher than you expect.
How to Manage Costs
Compare fares across airlines on Wego right now. Surcharge levels vary between carriers — Lion Air, Citilink, and Batik Air are all adjusting differently.
Here’s what you can do today:
- Book sooner rather than later. The government’s fuel surcharge decree allows airlines to increase surcharges up to 38% — many haven’t hit the ceiling yet, and further adjustments are likely as fuel costs remain elevated
- Take advantage of the VAT relief window. The government’s 11% VAT absorption is only guaranteed for two months from April. If you’re planning domestic travel, booking while this stimulus is active will save you roughly 11% on the tax component
- Check GarudaMiles cash costs before redeeming. With surcharges inflating the cash portion of award tickets, compare whether a cash fare via Wego might offer better value than burning your miles
- Monitor the surcharge review schedule. The government has indicated the fare cap and VAT measures will be reviewed after two months — watch for further policy changes in June 2026
Frequently Asked Questions
How much has the Garuda Indonesia fuel surcharge increased in 2026?
The government raised the fuel surcharge ceiling from 10% to 38% for jet aircraft on domestic economy-class fares under Minister of Transportation Decree No. KM 83 of 2026. Combined with a 9–13% base fare increase, total ticket prices are significantly higher than before the Middle East crisis.
Does the fuel surcharge apply to GarudaMiles award tickets?
Yes. When redeeming GarudaMiles, you still pay airport taxes, government taxes, and fuel surcharges in Rupiah. The higher surcharge ceiling means the cash portion of award tickets has increased substantially.
Are Garuda Indonesia flights to the Middle East still operating?
Only partially. As of 9 April 2026, Jakarta–Doha is suspended indefinitely, Jakarta–Dubai is suspended for 60 days from 1 April, and Jakarta–Jeddah has been reduced from daily to three flights per week. A two-week US-Iran ceasefire was announced on 7–8 April 2026, but Garuda Indonesia has not yet confirmed changes to these schedules. Check Garuda Indonesia’s flight status on Wego for the latest updates.
Is the Indonesian government helping to offset higher airfares?
Yes — the government is absorbing the 11% VAT on domestic economy-class flights for at least two months from April 2026, funded by a Rp 2.6 trillion (US$152.7 million) allocation. It has also eliminated import duties on aircraft spare parts. The VAT relief will be reviewed after the initial two-month period.
Sources
- Tempo.co — Garuda Indonesia to Raise Airfares Following Fuel Surcharge Hike
- The Jakarta Post — Indonesia Raises Jet Fuel Surcharge, Flight Ticket Prices as Oil Soars
- Antara News — Indonesia Sets Fuel Surcharge Ceiling to 38 Percent Amid Rising Costs
- Jakarta Globe — Indonesia’s Airlines Still Struggle Despite 38% Fuel Surcharge Increase
- IATA — Jet Fuel Price Monitor
- Garuda Indonesia — GarudaMiles Award Redemption
- Bloomberg — Indonesia to Cut Tax for Economy Airfare as Iran War Raises Energy Costs
- The Jakarta Post — Garuda Indonesia Suspends Flights From and to Doha
- The Star — Indonesia’s Garuda, Soekarno-Hatta Airport Confirm Middle East Flight Disruptions
- Pointalize — Garuda Indonesia GarudaMiles: The Complete Guide (2026)
- TTG Asia — Asia-Pacific Airlines Raise Fuel Surcharges as Jet Fuel Prices Climb
- Aviation A2Z — Trump Announces 2-Week Iran Ceasefire, Impact on Airlines
Disclaimer: Wego strives to ensure all information presented in this article is accurate and up to date at the time of publication. Travel policies, prices, visa requirements, and conditions can change rapidly. We strongly recommend verifying critical details with official sources before making travel decisions. Wego does not accept liability for any inaccuracies, oversights, or changes that may occur after publication.

