VAT Discount on Airline Tickets for Christmas and New Year

Indonesia's Directorate General of Taxes announced on 27 October 2025 that a VAT discount will be applied to airline tickets. The discount applies to tickets purchased for travel during the Christmas and New Year period.

VAT normally amounts to 10 % of the ticket price, so removing or reducing it lowers the total cost for passengers. The measure aims to make end‑year holiday travel more affordable for the public.

Lower fares are expected to boost ticket demand, while tax revenue from the aviation sector may temporarily decline. Authorities have not disclosed any further conditions or the exact duration of the discount.