Holiday travelers in Indonesia will soon have more reasons to plan their year-end getaways. The government confirmed that it will once again provide toll and public transportation discounts during the 2025/2026 Christmas and New Year holidays to boost domestic travel and tourism.
“There will be an announcement this month about discounts for transportation, tolls, sea, and air travel,” said Widiyanti, as reported by Antara on Tuesday (October 21, 2025).
Among the main incentives, the government has approved airfare discounts in the form of a Value Added Tax (VAT) reduction for passengers flying during the holiday period. This benefit applies to domestic travelers in economy class, valid for flights between October 22, 2025, and January 10, 2026. The measure is outlined in the Minister of Finance Regulation (PMK) No. 71 of 2025, signed by Finance Minister Purbaya Yudhi Sadewa on October 15, 2025.
Under this regulation, the government will bear 6 percent of the total 11 percent VAT on scheduled domestic economy-class flights. As a result, passengers will only pay 5 percent VAT when purchasing tickets during the promotional period.
The VAT reduction covers several cost components, including the base fare, fuel surcharge, and other service-related fees that are part of the taxable air transport services. According to Article 2 paragraph 5 of the regulation, “The reimbursement referred to in paragraphs (3) and (4) includes the base fare, fuel surcharge, and other fees paid by service recipients that are subject to VAT and are part of the air transportation business services.”
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This policy specifically targets domestic economy-class flights to support middle-income travelers and strengthen Indonesia’s aviation industry. The government clarified that premium services and international flights are not included in this incentive.
The Ministry of Transportation has also prepared additional travel discounts for the upcoming holidays. Minister of Transportation Dudy Purwagandhi explained that the 2025/2026 Christmas and New Year transportation policy will mirror the system used during the 2025 Eid season.
“During the previous Christmas and New Year period, there were no tax reductions. But this year, one of the proposed policies includes a tax incentive, similar to what was implemented during Eid,” said Dudy, as quoted from the official Kemenhub website.
The decision follows a coordination meeting at the Coordinating Ministry for Economic Affairs, which finalized a stimulus package to boost economic growth during the holiday season. The package includes discounts for air, rail, sea, and ferry transportation.
For train travel, passengers can enjoy a 30 percent fare reduction between December 22, 2025, and January 10, 2026. Sea transportation will also receive a 20 percent discount, applicable from December 17, 2025, to January 10, 2026.
Meanwhile, ferry operators will remove port service fees for regular classes and reduce executive ticket prices to match regular fares. This adjustment will be effective throughout the travel period from December 22, 2025, to January 10, 2026.
Through these combined incentives, the government hopes to make travel more affordable while supporting domestic tourism and the national transport sector during the year-end holidays.
