Indonesian aviation tax and transport regulatory reforms

The Indonesian Ministry of Transportation is advancing regulatory and economic reforms across the aviation, land, and digital transport sectors. To maintain affordable airfares for the 2026/2027 Christmas and New Year holiday period, authorities are preparing a Government-Borne Value Added Tax (PPN-DTP) stimulus and finalizing new regulations regarding upper fare limits.

Minister Dudy Purwagandhi has emphasized strengthening safety standards through increased operator supervision and mandatory competency assessments for public transport executives. In the land transport sector, the Directorate General of Land Transportation is utilizing a Terminal Online System to monitor Intercity Interprovincial (AKAP) bus services. Data from January to October 2026 reveals that over 55% of arriving bus trips at Type A terminals showed indications of violations, primarily involving route deviations.

Regarding digital platforms, the government is working to include online motorcycle taxis (ojol) under the public transportation category within the revised Traffic and Road Transport Law. This legislative change aims to clarify the rights and obligations of drivers and operators while addressing ongoing discussions regarding the protection, flexibility, and social security of digital platform workers.

In the maritime sector, stricter rules for heavy goods continue to be implemented, with operators such as PT Pelni and PT ASDP instructed to separate passenger and freight services. Additionally, the Ministry continues to support the expansion of Transjakarta into sea and air sectors to foster an integrated multi-modal system.