The Indonesian government has set aside IDR 1.54 trillion (approximately USD 100 million) to subsidize transportation fares during upcoming school holidays and the Christmas and New Year 2027 period.
The initiative aims to reduce travel costs for citizens and stimulate domestic mobility during peak seasonal demand.
Transportation Minister Dudy Purwagandhi confirmed the budget allocation, detailing that the funds will be distributed as direct incentives and fare discounts across various transport modes.
The program targets key travel windows when demand typically surges, seeking to balance affordability with operational sustainability for carriers.
This fiscal support aligns with broader efforts to maintain consumer spending momentum in Southeast Asia’s largest economy.
By lowering the cost of travel, authorities hope to encourage tourism and family visits, which are significant contributors to regional economic activity during the festive calendar.