Purbaya Officially Assumes 100% of Aircraft Ticket Tax in Response to Rising Avtur Prices

Jakarta, CNBC Indonesia - Finance Minister Purbaya Yudhi Sadewa has officially issued Ministerial Regulation on Finance (PMK) No. 24 of 2026, which establishes a tax incentive for aircraft tickets to curb the effects of the surge in avtur prices.

The tax incentive takes the form of Value Added Tax (VAT) borne by the government (DTP) at 100% on the provision of scheduled commercial domestic air transport services in economy class until the end of 2026.

“To maintain public purchasing power in response to the increase in avtur prices, the government provides a Value Added Tax incentive on the provision of scheduled commercial domestic air transport services in economy class that is borne by the government in the 2026 fiscal year,” quoted from PMK 24/2026, on Monday (27/4/2026).

The VAT borne by the government is the VAT due on the base fare and fuel surcharge.

The incentive is further provided to service recipients for the ticket purchase period and flight period carried out during the 60 (sixty) days from the effective date of this Ministerial Regulation, namely 25 April 2025, or one day from its issuance on 24 April 2026.

Meanwhile, for Air Transport Business Entities, or airlines, as taxable entrepreneurs (PKP) providing scheduled commercial domestic air transport services in economy class, Purbaya mandates the issuance of tax invoices or certain documents equivalent to tax invoices, and the submission of Monthly VAT Notification Letters (SPT) in accordance with taxation regulations.

“Must prepare a detailed list of transactions for VAT borne by the government on the provision of Scheduled Commercial Domestic Air Transport Services in Economy Class,” as stated in Article 5.

In those provisions, Purbaya also stipulates a number of lists of VAT due that are not borne by the government, including services provided outside the ticket purchase period and flight period.

Then, not conducting flights in economy class; or the Taxable Entrepreneur submits a detailed list of transactions for VAT borne by the government on the provision of Scheduled Commercial Domestic Air Transport Services in Economy Class not in accordance with the time limit.

“On the provision of Scheduled Commercial Domestic Air Transport Services in Economy Class as referred to in paragraph (1), VAT is imposed in accordance with taxation regulations,” quoted from Article 6.