Indonesia prepares airfare stimulus for 2026/2027 holidays

The Indonesian government is preparing airfare price incentives for the 2026/2027 Christmas and New Year holiday period. The proposed measures include Value Added Tax (VAT) being borne by the government (PPN DTP) and potential adjustments to other flight cost components.

Agustinus Budi Hartono, Director of Air Transportation at the Directorate General of Civil Aviation, stated that maintaining affordable ticket prices is a priority due to the expected surge in public mobility. The government is currently drafting the necessary Ministry of Finance regulations, with the VAT incentive expected to match the current 11% rate.

Additionally, officials are reviewing adjustments to the Passenger Service Charge (PSC) and fuel surcharges, though these specific amounts have not yet been finalized. Coordinating Minister for Economic Affairs Airlangga Hartarto previously noted that various economic stimuli, including transportation discounts, would be prepared for the second half of 2026.