The Indonesian government has committed IDR 1.54 trillion (approximately USD 100 million) to subsidize transportation costs for citizens traveling during upcoming school holidays and the Christmas and New Year 2027 period.
The initiative includes a full 100% Value Added Tax (VAT) exemption for economy-class domestic flight tickets, effectively removing the tax burden from consumers for scheduled flights.
This fiscal support is designed to lower the cost of travel and encourage domestic tourism and business movement during peak seasonal periods.
The subsidy program targets key travel windows, aiming to boost activity in the aviation and broader transport sectors.
By offsetting the VAT, the government seeks to make domestic air travel more affordable, potentially increasing passenger volumes for local carriers.
The measure reflects a broader strategy to support domestic consumption and mobility during critical economic periods.