Indonesian Political, Business & Finance News

Take Note! 2026 Airplane Ticket Discounts, VAT Covered by the Government

| Source: DETIK Translated from Indonesian | Regulation
Take Note! 2026 Airplane Ticket Discounts, VAT Covered by the Government
Image: DETIK

The policy is outlined in Minister of Finance Regulation (PMK) No. 24 of 2026. This regulation forms part of efforts to maintain public purchasing power amid fluctuations in aviation fuel (avtur) prices.

So, what are the full details of this airplane ticket discount scheme?

100% VAT on Airplane Tickets Covered by the Government

Referring to PMK No. 24 of 2026, the government has stipulated that VAT on scheduled commercial domestic air transport services in economy class will be fully covered by the government at 100% for the 2026 fiscal year.

This policy is a response to the increase in avtur prices, which impacts airplane ticket fares. With this incentive, the ticket prices paid by passengers become lighter, as the VAT component is not charged to consumers.

The VAT covered by the government includes the base ticket fare and the fuel surcharge. These two components serve as the basis for calculating this tax incentive.

Validity Period and Main Provisions

Based on information from the official account of the Directorate General of Taxes (DJP), this incentive applies to the ticket purchase period and flight period from 25 April to 23 June 2026, or for 60 days.

This means tickets must be purchased within that time frame, and the flight schedule must also occur during the same period to qualify for the government-covered VAT facility. This provision aligns with the PMK rules, which state that the incentive only applies within a specific period from when the policy is implemented.

This facility is intended for domestic flights in economy class. Therefore, international flights or classes other than economy are not included in this incentive scheme.

Covered and Non-Covered Components

Still referring to the official provisions, the government-covered VAT only applies to the base ticket fare and fuel surcharge components. These are the main parts of airplane ticket prices.

Meanwhile, several additional fees are not included in the government-covered VAT facility. These include extra baggage fees, seat selection, travel insurance, and premium food or drink services. These components remain subject to VAT and must be paid by passengers.

This provision is important for the public to understand that not all ticket costs are entirely tax-free, but only specific components in accordance with the regulations.

In its considerations, the government states that this policy aims to maintain public purchasing power and support domestic mobility. The tax incentive is expected to encourage stable domestic air travel activity.

This airplane ticket discount policy through government-covered VAT can be utilised by the public during the specified period. By understanding the requirements, period, and applicable components, prospective passengers can plan their trips more efficiently.

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