
Indonesian Finance Minister Sri Mulyani explains the cutting of domestic airplane ticket prices for the 2025 Eid al-Fitr homecoming period, at Soekarno-Hatta Airport, Tangerang, on Saturday, March 1, 2025. (Photo: RRI/Saadatuddaraen)
KBRN, Tangerang: Indonesian Finance Minister Sri Mulyani Indrawati has announced that the government will cover 6% of the value-added tax (VAT) for the purchase of flight tickets during the Eid al-Fitr homecoming period in 2025.
"We have issued Finance Minister Regulation (PMK) No. 18/2025 on partial government coverage of VAT. This applies to economy class flight tickets for domestic travel during the Eid al-Fitr homecoming period," said Minister Sri Mulyani at Soekarno-Hatta Airport, Tangerang, over the weekend, as reported by rri.co.id.
According to the Minister, this regulation is valid for ticket purchases from March 1 to April 7, 2025, while flights will occur between March 24 and April 7, 2025.
This means that all domestic economy flight tickets purchased between March 1 and April 7 for flights scheduled between March 24 and April 7 will have their VAT reduced. Consequently, the public will only pay a tax of 5%, as the remaining 6% is covered by the government.
"During the period from March 24 to April 7, domestic flight ticket prices will decrease by 13-14%. This aligns with the President's directive for the government to continuously assist the public, especially during crucial times like this Eid," the Minister said.
She added that as people travel back to their hometowns or meet relatives, several ministries will participate in providing relief to those undertaking the Eid al-Fitr homecoming.
"The Finance Ministry has taken steps to continue supporting and reducing the burden on the public. The government is providing fiscal stimulus during national religious holidays," said Sri Mulyani.
Domestic flight ticket prices will receive a 6% VAT incentive, while toll rates will decrease by 20% during the Eid al-Fitr homecoming period. The price reduction for tickets officially began on Saturday, March 1, 2025.
Coordinating Minister for Infrastructure and Regional Development, Agus Harimurti Yudhoyono, said that the policy regarding reduced air and land transport fares is a direct instruction from President Prabowo Subianto. The aim is to assist the public in alleviating travel costs during this year's Eid al-Fitr homecoming period.
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