JAKARTA. The Indonesian government has rolled out four economic stimulus and incentive packages to mitigate the risks posed by global economic pressures, particularly those arising from geopolitical conflicts in the Middle East.
Coordinating Minister for Economic Affairs Airlangga Hartarto announced that the measures include a 1.5% final Income Tax on authors' royalties, as well as exemptions from import duties on Liquefied Petroleum Gas (LPG) and plastic raw materials.
The introduction of the 1.5% final income tax on authors' royalties is intended to support Indonesia's creative industry. Previously, authors' royalties were subject to Article 23 Income Tax, with effective tax rates ranging from 7% to 15% of a book's selling price.
Maintaining Price Stability
Meanwhile, the exemption from import duties on LPG for the chemical industry and on plastic raw materials is expected to reduce production costs, helping prevent increases in consumer goods prices.
This policy complements the government's earlier decision to reduce import duties on aircraft spare parts to 0%, a measure aimed at lowering airline operating costs and improving the competitiveness of the aviation industry.
School Holiday Transportation Discounts
In addition to the tax and customs incentives, the government will also provide travel incentives to encourage domestic tourism during the school holiday season.
The incentives include:
100% Government-Borne Value-Added Tax (VAT) on domestic economy-class airline tickets.
A 30% discount on train tickets and Pelni passenger ship tickets. The discounts apply to train departures between 20 June and 5 July 2026, and Pelni departures between 20 June and 15 August 2026.
Exemption from ASDP port service fees from 20 June to 5 July 2026.
The government has allocated Rp190.5 billion for the train, Pelni, and ASDP incentives, targeting approximately 3 million passengers.
Meanwhile, Rp472.7 billion has been allocated to finance the government-borne VAT incentive for domestic airline tickets, benefiting an estimated 2.3 million passengers.
Year-End Holiday Travel Incentives
In a written statement, Airlangga also confirmed that similar incentives will be provided during the Christmas and New Year (Nataru) holiday period, from 22 December 2026 to 4 January 2027, to stimulate year-end travel.
The incentives include:
100% Government-Borne VAT for domestic economy-class airline tickets.
A 30% discount on train tickets for travel between 22 December 2026 and 4 January 2027.
A 30% discount on Pelni passenger ship tickets for departures between 17 December 2026 and 10 January 2027.
Exemption from ASDP port service fees between 22 December 2026 and 10 January 2027.
The government has allocated Rp161.4 billion for train ticket discounts, Pelni ticket discounts, and ASDP port fee exemptions during the year-end holiday period, targeting approximately 2.8 million passengers.
An additional Rp722 billion has been earmarked to finance the 100% Government-Borne VAT incentive for domestic airline tickets during the Christmas and New Year holidays, with an estimated 3.7 million passengers expected to benefit. (KEN)
