Over Christmas and New Year, the Indonesian government will cover the full VAT on economy-class tickets for domestic flights on behalf of passengers.
The relief also applies to flights between Bali and other cities in Indonesia. Tickets must be purchased between 20 October 2026 and 10 January 2027, and the departure must fall between 22 December and 10 January.
The finance minister's regulation took effect on 20 October. The government is covering the tax on the base fare and the fuel surcharge. The relief does not apply to the airport tax, and passengers pay the VAT on extra baggage and seat selection themselves.
In the example given in the regulation, a ticket costs 1.14 million rupiah, of which about 100 thousand rupiah is VAT, which the government will pay in full. That is almost 9% of the price. The amount differs for each passenger and depends on the fare.
If the ticket was purchased before 20 October, the relief will not apply, even if the departure falls during the holidays. Passengers do not need to apply for anything separately: the airline applies the relief and also reports it to the tax authorities.
International flights and business class are not covered. The regulation contains no conditions regarding the passenger's citizenship.
Last New Year, the government covered only part of the tax: of the 11% VAT, passengers paid 5%. This year, the government has already covered the full tax on domestic air tickets for the holiday marking the end of Ramadan and for the school holidays.
Holiday discounts have also been promised for other modes of transport. Train tickets will be 30% cheaper, tickets for ships operated by the sea carrier Pelni will be reduced by 30% of the base fare, and state-run ferries will not charge the port fee.
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