Airfare and transport discounts are officially implemented to make year-end travel more affordable for millions of passengers.
The Indonesian government has officially announced a reduction in airline ticket prices to welcome the upcoming Christmas and New Year holidays. The initiative forms part of the government’s efforts to curb fare increases ahead of the year-end festive season.
To begin with, the Indonesian Ministry of Finance is providing a 6% Value Added Tax (VAT) incentive, borne by the government, for domestic economy-class airfares during the holiday period. As a result, passengers will only be required to pay 5% VAT. This policy is set out under the Minister of Finance Regulation Number 71 of 2025 concerning Value Added Tax on the Delivery of Domestic Economy-Class Scheduled Commercial Air Transportation Services during the Christmas and New Year Holiday Period.
The regulation was officially signed on Wednesday, the 15th of October, by the Indonesian Minister of Finance, Purbaya Yudhi Sadewa.
The promotional ticket purchase period will run from the 22nd of October, 2025, to the 10th of January, 2026, and applies to flights scheduled between the 22nd of December, 2025, and the 10th of January, 2026.
Meanwhile, according to the Indonesian Ministry of Transportation’s official Instagram account, the programme targets approximately 3.59 million passengers across Indonesia, offering discounts on airline tickets ranging from 13% to 14%. The reduction in airfares will also be supported by a 50% cut in fees charged by airport operators for Aircraft Passenger Services (PJP2U) and Aircraft Landing, Parking, and Storage Services (PJP4U), alongside a 10% reduction in aviation fuel prices at 37 airports nationwide.
In addition to these discounts, the Indonesian Ministry of Transportation is preparing enhanced services at airports during the festive period, including extending operating hours to 24 hours at several major airports.
The promotional fare programme is not limited to air travel alone. Discounts will also apply to other modes of transport: a 30% fare reduction for 1.5 million train passengers between the 22nd of December, 2025, and the 10th of January, 2026, and a 20% discount for 405,000 sea transport passengers travelling between the 17th of December, 2025, and the 10th of January, 2026.
As the ministry had previously written on an Instagram Post uploaded on Thursday, the 2nd of October: “Based on the Limited Coordination Meeting for Finalisation of the Economic Policy Package on Economic Growth Stimulus at the Coordinating Ministry for Economic Affairs held last Wednesday [the 1st of October], the transportation discount stimulus package for the 2025/2026 Christmas and New Year period includes discounts on airplanes, trains, ships, and ferry boats.”