Government Extends VAT Exemption on Economy-Class Flight Tickets Until 5 July 2026

Jakarta, CNBC Indonesia - The government has decided to extend the 100% Value Added Tax borne by the government (PPN DTP) discount on scheduled economy-class domestic flights from 24 June to 5 July 2026. This was announced directly by Minister of Transportation Dudy Purwagandhi on Saturday (20/6/2026).

"This policy represents the government’s presence in providing convenience for the public to travel at more affordable costs. We hope this incentive can be optimally utilised by the public, while also stimulating the transportation, tourism, and national economy sectors," said Minister Dudy in Jakarta, as quoted on Monday (22/6/2026).

This is stipulated in the Joint Decree of the Minister of Transportation, Minister of Finance, and Head of the State-Owned Enterprise Regulatory Body concerning the Assignment to State-Owned Enterprises in the Transportation Sector to Provide Transport Fare Discounts for Economic Stimulus during the 2026 School Holiday Period, Christmas 2026, and New Year 2027.

The PPN DTP incentive is not new. Last April, the government provided a PPN DTP incentive on flight tickets. That incentive was due to expire tomorrow, Tuesday, 23 June 2026. The incentive, provided to curb the surge in flight ticket prices amid a sharp rise in aviation fuel costs driven by global energy trends, was previously set to be valid for only 60 days starting from 25 April 2026.

Under the previous PPN DTP policy, the government sought to ensure the public could still access air transport without bearing an excessively high price increase burden. This was done to ensure domestic flight fare increases were suppressed to a range of 9% to 13%.

In addition to flight tickets, Dudy confirmed the government also released transport fare discount policies for the 2026 school holiday period, including a 30% discount for all commercial economy-class train services on all routes from 20 June to 5 July 2026, a 30% discount for all economy-class passenger ship routes from 20 June to 15 August 2026, and a 100% discount on port service fees for foot passengers, class II and IVA vehicles, and 14 ports (7 routes) for ferry transport from 20 June to 5 July 2026.

The ferry routes receiving fare discounts include Merak-Bakauheni, Ketapang-Gilimanuk, Lembar-Padangbai, Kayangan-Pototano, Tanjung Uban-Telaga Punggur, Ajibata-Ambarita, and Sape-Labuan Bajo.

Minister Dudy added that safety, security, and comfort aspects remain the top priorities in the provision of transport services during the holiday period.