Indonesia, which posts the highest nominal GDP in Southeast Asia, will cut domestic economy-class airfares by 11% to 13% during the 2026 Christmas and 2027 New Year holiday periods under a government stimulus package. #Reading
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Indonesia, which posts the highest nominal GDP in Southeast Asia, will cut domestic economy-class airfares by 11% to 13% during the 2026 Christmas and 2027 New Year holiday periods under a government stimulus package.
The fare reductions will apply to flights from Dec. 22, 2026, to Jan. 10, 2027, to ease travel costs during the year-end peak season, Antara News Agency reported.
Eligible flights have been available for booking since Oct. 20, 2026.
The measures aim to ease travel costs during the year-end holiday period through discounts on several modes of transport and tax incentives for domestic air travel, Jakarta Post reported.
The government will cover 100% of the value-added tax (VAT) on eligible airline tickets and offer a 50% discount on airport charges.
The reductions apply to passenger service charges and aircraft landing, parking and storage fees.
Indonesia recorded 842.15 million domestic tourist trips in the first eight months of 2026, up 4.29% from the same period last year, according to official data.
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