Indonesia implements stimulus to reduce flight ticket prices for year-end holidays

The Indonesian government has introduced several stimulus measures aimed at reducing domestic economy class flight ticket prices by approximately 11–12 percent during the 2026 Christmas and New Year (Nataru) holiday period.

Key incentives include an 11 percent Value Added Tax (VAT) borne by the government (PPN DTP) for scheduled domestic commercial air transport services, as regulated by Minister of Finance Regulation Number 77 of 2026. Additionally, the government is providing a 50 percent discount on airport service fees, specifically for Passenger Service Charges (PSC) and aircraft landing, placement, and storage services at airports managed by state enterprises and local governments.

Director General of Civil Aviation Lukman F. Laisa stated that these policies are intended to facilitate national mobility and support economic growth. The stimulus applies to flights scheduled between December 22, 2026, and January 10, 2027, with the ticket purchase period running from October 20, 2026, to January 10, 2027. Actual price reductions may vary based on routes, schedules, and seat availability.