60 Days Ahead, Domestic Flight Economy Class VAT is Covered by the Government

JAKARTA - The government has issued Minister of Finance Regulation Number 24 of 2026, which regulates the provision of value added tax (VAT) facilities borne by the government on the price of economy class air tickets for domestic flights.

Through this policy, the PPN on the basic tariff and fuel surcharge is borne by the government, so that the burden of the ticket price paid by the public can be suppressed even though the airline's operating costs increase due to the increase in jet fuel prices.

"This facility applies to ticket purchases and flight implementation for 60 days, after one day starting from the date of enactment," said Coordinating Ministry for Economic Affairs Spokesperson Haryo Limanseto, in a statement in Jakarta, quoted by Antara, Monday, April 27.

Haryo explained that fiscal policy interventions were an important step to reduce pressure on ticket prices given that jet fuel prices account for about 40 percent of the total operating costs of airlines.

To ensure that the implementation is targeted, the air transportation business entity is still required to report the use of the VAT facility in an orderly and transparent manner in accordance with the applicable tax provisions.

Meanwhile, for flights outside the economy class, the VAT provisions will still be applied as appropriate.

This arrangement is designed so that government support is truly felt by the wider community who need it most, while being managed effectively and sustainably.

Meanwhile, the government continues to strive to protect the public from the impact of rising global energy prices, including the surge in the price of aircraft fuel or avtur which has driven the increase in ticket prices.

"For this reason, the government is moving quickly to prepare strategic mitigation steps to maintain the sustainability of the national aviation industry while ensuring that air ticket prices remain affordable, by holding domestic flight fares at a range of 9 percent to 13 percent," said Haryo.

The government previously also set an adjustment to the fuel surcharge through the Minister of Transportation's Decree Number 83 of 2026 to be 38 percent for both jet and propeller aircraft, from the previous 10 percent for jets and 25 percent for propellers.

Through the combination of the PMK 24/2026 issuance policy, the government provides convenience for the public to continue to access air transportation at a more affordable price, maintain inter-regional connectivity, and support the sustainability of the national aviation industry in the midst of the challenge of rising global energy prices.