Government Gives DTP VAT Incentives, Domestic Economy Aircraft Tickets Get Discounts

JAKARTA - Finance Minister Sri Mulyani Indrawati officially set a policy of discounting plane tickets through government-borne value added tax incentives (PPN DTP) of 6 percent, which has been in effect since June 5, 2025.

As for the regulation signed on June 4, 2025 and officially effective from June 5, 2025, it only applies to domestic flights with an economic class.

This provision is contained in the Minister of Finance Regulation (PMK) Number 36 of 2025 concerning Value Added Tax on Submission of Domestic Scheduled Commercial Air Transport Services for Economic Classes during the Government-borne School Holiday Period for Fiscal Year 2025.

Sri Mulyani said that this policy aims to maintain people's purchasing power and encourage national economic growth, especially during the school holidays.

"That to maintain people's purchasing power and drive the national economy, especially during the school holiday period," he wrote in the regulation, quoted on Wednesday, June 11.

He added that the government provided a number of economic incentives, one of which was in the form of value-added tax incentives for the delivery of domestic scheduled commercial air transportation services borne by the government for the 2025 fiscal year.

Coordinating Minister for Economic Affairs Airlangga Hartarto conveyed that the provision of VAT DTP incentives of 6 percent for economy class aircraft tickets was given during the period June 2025 - July 2025.

Airlangga said that through this policy, VAT of 6 percent for purchasing domestic economic aircraft tickets was borne by the government with a budget allocation of IDR 430 billion.

"With this policy, the ticket price paid by the community will be cheaper, because people only pay VAT of 5 percent of what should be 11 percent," he explained.

This incentive applies to the ticket purchase period from June 5 to July 31, 2025 and the flight period from June 5 to July 31, 2025.

"This incentive is a follow-up to President Prabowo Subianto's direction and the results of cross-ministerial and institutional coordination, in order to maintain the momentum of national economic growth and strengthen economic stability," he said.

With this policy, said Airlangga, the government hopes to encourage increased community mobility during the June 'July 2025 period.

According to him, the increasing community activities are expected to have a positive impact on the domestic transportation and tourism sector.