Government Waives VAT, Lowering Airfare for Eid Homecoming Travel

JAKARTA. Through the Ministry of Finance, the government provides a Value Added Tax (VAT) relief for domestic economy-class flight tickets. This policy aims to ease the financial burden on people traveling for the 2025 Eid homecoming.

According to bisnis.com, Minister of Finance Sri Mulyani stated that this regulation is outlined in Minister of Finance Regulation (PMK) No. 18 of 2025, which took effect on Saturday, March 1, 2025. Under this policy, passengers will only need to pay 5% VAT, while the government will cover the remaining 6%.

This incentive applies to tickets purchased between March 1 and April 7, 2025, for flights scheduled between March 24 and April 7, 2025. The policy is expected to reduce domestic economy-class airfare prices by approximately 13% to 14%.

"All domestic economy-class tickets purchased within this period will receive a VAT reduction, so passengers will only pay 5%, with the rest covered by the government," said Sri Mulyani at Soekarno-Hatta Airport on Saturday (1/3).

Additional Facilities

In addition to the VAT incentive, the government has implemented various measures to lower airfare prices. According to cnnindonesia.com, Coordinating Minister for Infrastructure and Regional Development, Agus Harimurti Yudhoyono (AHY), stated that the government has reduced airport fees and aviation fuel prices at 37 airports. A decrease in fuel surcharges has also contributed to lowering flight fares.

"We want to ensure there are incentives for reducing ticket prices. Through various efforts by the Ministry of Transportation, the Ministry of State-Owned Enterprises (BUMN), and stakeholders in the aviation industry, we have successfully lowered aviation fuel prices at 37 airports as well as the fuel surcharge," AHY said.

Furthermore, AHY mentioned that the government is providing various other facilities to support smooth homecoming travel. One of these is a free homecoming program for 100,000 people using buses, trains, and ferries, organized by the Ministry of Transportation and the Ministry of State-Owned Enterprises.

Additionally, the government is ensuring the readiness of road infrastructure, both toll and non-toll. Security, safety, and health posts will also be set up at various accident-prone and disaster-prone locations to ensure a smooth journey for travelers during the homecoming season. (KEN)