Finance Minister Purbaya Gives 6% VAT Relief for Economy Airfare

Finance Minister Purbaya Yudhi Sadewa announced a 6 % VAT incentive for economy‑class airline tickets during the 2025‑2026 Christmas and New Year holidays across Indonesia. The incentive applies to tickets purchased from 22 October 2025 to 10 January 2026.

Coordinating Minister for Infrastructure and Regional Development Agus Harimurti Yudhoyono (AHY) said the VAT subsidy could lower ticket prices by up to 14 % for both the Nataru period and the upcoming Lebaran travel season. The measure is stipulated in Minister of Finance Regulation No 71/2025, which splits the 11 % VAT into 5 % paid by passengers and 6 % borne by the government.

AHY expects the lower fares to stimulate travel, increase holiday spending, and benefit micro, small and medium enterprises in destination regions. The policy aims to preserve consumer purchasing power and boost national economic growth through the aviation sector.