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Indonesia ⁢Announces Up to ⁣14% Discount on Domestic Flights for Christmas/New Year 2025-2026

JAKARTA, Indonesia – The Indonesian government has announced⁣ a reduction of ⁤13-14% in the price of domestic economy class airline tickets for⁣ travel⁣ during the peak Christmas 2025 and New Year 2026 holiday period.⁢ This ‍move, initiated⁣ by president Prabowo Subianto, aims to bolster national⁢ economic growth⁢ by increasing consumer spending ⁤and improving connectivity across the archipelago.

Minister of‍ Transportation Dudy Purwagandhi emphasized the government’s commitment to easing the financial burden on travelers during this festive season. “We are taking this step so that connectivity between regions is maintained⁤ and people’s mobility runs smoothly at⁤ more affordable rates. We want to ensure that all people can enjoy air transportation services, especially during Christmas 2025 and New⁣ Year 2026,” he stated.

The price reduction is being implemented through a‍ combination of regulatory measures:

• Minister of Transportation Decree Number KM 50 of 2025: Reduces the‍ fuel surcharge⁢ for economy class domestic flights.
• Minister of Finance Regulation Number 71 of 2025: The government will bear⁤ the Value Added ⁣Tax (VAT) on economy class domestic flights during⁢ the holiday period⁢ for the 2026 fiscal year.
• Director General of Civil Aviation Decree Number KP-DJPU ⁤235 of 2025: Details the implementation of the price adjustments.

Impact and Potential Benefits

indonesia, being an ‍archipelago of over 17,000 islands, relies heavily on air travel for domestic connectivity. High ticket‍ prices have historically been a barrier to travel for manny Indonesians,notably during⁢ peak seasons. This intervention⁣ is expected to:

• Increase Tourism: Lower prices will likely encourage more domestic tourism, benefiting hotels, restaurants, and local businesses.
• Stimulate Economic Activity: Increased travel ‍spending will contribute to overall economic growth.
• Improve Regional Connectivity: More affordable flights will facilitate business and personal travel between different ⁣regions of Indonesia.
• Support Household Spending: Reduced travel costs free up disposable income for other consumer goods ⁢and services.