Families planning school holiday trips this year have an opportunity to travel by air at lower costs. The government has introduced a temporary incentive that makes domestic economy-class flight tickets more affordable by covering the Value Added Tax (VAT) on eligible purchases.
The measure is regulated under Finance Minister Regulation (PMK) No. 43 of 2026. Through this policy, the government bears up to 100 percent of the VAT imposed on the base fare and fuel surcharge for domestic economy-class flights.
The incentive applies to tickets purchased from the date the regulation took effect until July 5, 2026. The discounted tickets are valid for flights scheduled between June 24 and July 5, 2026.
According to Director General of Air Transportation at the Ministry of Transportation Lukman F. Laisa, the policy reflects the government’s joint effort to make travel easier for the public during the school holiday period.
He said the program is also intended to help preserve household purchasing power at a time when many families are planning vacations and other holiday-related expenses.
“The Government-Borne VAT program is one of the government’s measures to provide a stimulus for the public so they can travel by air at lower costs during the school holiday period. As a result, people have greater flexibility in managing their travel expenses and other needs,” Lukman said in a written statement, as quoted by detikFinance on Tuesday (June 30, 2026).
The policy was immediately reflected in ticket prices. Data from the Air Transport Inspection System (ArTIS) showed that all airlines adjusted fares on several domestic economy-class routes on June 24.
The government expects the measure to support smoother public mobility during the holiday season, improve connectivity between destinations, and deliver positive effects for Indonesia’s tourism sector.
Read also: Marketplace Sellers to Face 0.5% Tax Collection Starting in July 2026
Authorities will continue monitoring and evaluating the implementation of the program on a regular basis. The reviews are intended to ensure that the benefits reach the public optimally and that airlines implement the policy in accordance with prevailing regulations.
The Ministry of Transportation also warned that it would take firm action if violations are discovered during the implementation period. Enforcement measures may include administrative sanctions against airlines that fail to comply with the requirements.
“We encourage the public to take advantage of this program during the designated period. The government will continue striving to maintain a balance between the affordability of air transportation services, the sustainability of airline businesses, and the aspects of safety, security, and aviation services,” Lukman said.
Through the temporary VAT incentive, the government hopes more people can enjoy affordable air travel during the school holidays while maintaining healthy airline operations and ensuring that safety and service standards remain a priority.
