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View all search resultsGovt rolls out year-end travel discounts, extends economic stimulus
A VAT waiver is offered for domestic economy class flights during the Christmas and New Year holiday period.
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Stranded passengers wait on Sept. 7 at the domestic terminal of I Gusti Ngurah Rai International Airport as some flights to Jakarta were canceled due to the eruption of Mount Anak Krakatau volcano, in Kuta, Bali. (Reuters/Johannes Christo)
T
he government has introduced transportation discounts for the 2026/2027 Christmas and New Year holiday period, including a value-added tax waiver for domestic economy class flights, as part of a broader stimulus package aimed at sustaining household spending and economic growth through the end of the year.
As the Government Communications Agency announced on Sunday, the transportation incentives cover domestic scheduled flights, trains, passenger ships and ferry crossings, with discounts of up to 30 percent on ticket fares and up to 100 percent on certain port service charges.
The VAT waiver on airfares applies to tickets purchased from Oct. 20, 2026 to Jan. 10, 2027 for travel from Dec. 22, 2026 to Jan. 10, 2027.
The facility applies to the base fare and fuel surcharge for domestic economy-class scheduled flights, but excludes additional services, such as excess baggage and seat selection.
The policy is intended to ease travel costs during the year-end holidays while encouraging domestic tourism and related economic activity.
Coordinating Economic Minister Airlangga Hartarto said the transportation stimulus, agreed upon in the middle of the year, was expected to benefit around 6.6 million people and to cost the state around Rp 883 billion.
“The [Christmas and New Year] stimulus includes an agreed 30 percent discount on tickets, 30 percent for ships, special pricing for port services from ASDP [state-owned passenger ferry operator], as well as government-borne VAT for domestic air travel,” Airlangga said on Friday.
