Government Implements Eid Discounts for Airline Tickets and Toll Rates

JAKARTA, KOMPAS – The government has officially provided a discount of approximately 13-14 percent on domestic economy class flight tickets during the 2025 Eid season. This policy will be effective for purchases made from March 1, 2025, to April 7, 2025, for departures between March 24, 2025, and April 7, 2025.

The Coordinating Minister for Infrastructure and Regional Development, Agus Harimurti Yudhoyono, stated that the government has reduced domestic economy-class airfare prices by 13-14 percent. The price of aviation fuel at 37 airports has also been cut. This effort is expected to help the public prepare for returning to their hometowns during the upcoming Eid celebrations.

"This is what, in aggregate, will hopefully allow the government to lower the prices of domestic economy flight tickets overall for approximately two weeks," said Agus during a press conference on the reduction of flight ticket prices at Terminal 2 of Soekarno-Hatta Airport, Tangerang, Banten, Saturday (1/3/2025).

Present at the press conference were several other state officials. Among them were the Minister of Finance (Menkeu) Sri Mulyani, the Minister of State-Owned Enterprises (BUMN) Erick Thohir, and the Minister of Transportation (Menhub) Dudy Purwagandhi. Also in attendance were the Minister of Public Works (PU) Dody Hanggodo and the Cabinet Secretary Minister Major Teddy Indra Wijaya.

The reduction in ticket prices was achieved through government intervention in several components of airline ticket pricing. One form of intervention was the provision of incentives through the reduction of Value-Added Tax (VAT) rates.

The government will bear the 6 percent VAT rate. Meanwhile, consumers bear the remaining 5 percent.

Sri Mulyani stated that her party has issued Minister of Finance Regulation (PMK) Number 18 of 2025 concerning VAT on the Provision of Scheduled Domestic Commercial Air Transportation Services in the Economy Class borne by the Government for the 2025 Fiscal Year.

For people who have already purchased plane tickets before the regulations were set, these benefits do not apply.

This regulation applies to ticket purchases from March 1, 2025, to April 7, 2025, for departures between March 24, 2025, and April 7, 2025.

"So (consumers) only pay 5 percent of their tax, meaning the remaining 6 percent is borne by the government. This PMK will then be effective for those who will make purchases starting today, March 1, 2025," he said.

For people who have already purchased plane tickets before the regulation is set, these benefits do not apply. The Government-borne VAT (DTP) effort is a step by the Ministry of Finance to reduce the burden on the community.

Government intervention to lower ticket prices is also done through airport service fee cuts and additional fees for aviation fuel. The Ministry of Transportation has issued a letter to airport business entities to provide a 50 percent discount on airport levies or Aircraft Passenger Service Fees (PJP2U).

The same deduction also applies to Aircraft Landing, Placement, Storage Services (PJP4U). PJP4U for example is in the form of aircraft landing and aircraft parking services.

In the letter, the Ministry of Transportation also instructed airport managers to adjust airport operations. Managers are expected to open airport operating hours for 24 hours, as needed.

Minister of Transportation Decree Number KM 19 of 2025 also regulates the reduction of additional fuel surcharges for economy class passenger fares during Eid al-Fitr 2025.

The fuel surcharge for jet aircraft is a maximum of 2 percent of the upper limit tariff (TBA). For propeller aircraft, the surcharge is 20 percent of the TBA.

This applies to airlines that serve flights to airports managed by the Directorate General of Civil Aviation.

Separately, this decision was also agreed by the Indonesian National Aviation Association (INACA). The policy of discounting flight tickets can be done with certain notes.

"Yes, it is implemented at certain times within certain time limits, it can be done as decided by the government with the DTP VAT scheme for cost components such as PJP4U, PJP2U, fuel prices, and others. So that the ticket price paid by passengers is cheaper than the normal period," said Bayu Sutanto who is also the President Director of PT Transnusa Aviaton Mandiri.

However, he reminded that during peak seasons, such as Christmas and New Year and Eid, the occupancy rate (load factor) is only full for one flow. During the homecoming flow, the plane is fully filled when heading to the area. However, the occupancy on the return trip is not optimal. A similar pattern also applies during the return flow.

Chairman of the Indonesian Airline Service Users Association (Apjapi) Alvin Lie, said that travelers have planned their trips and budgets well in advance. They have already bought tickets. They also find it difficult to change their travel plans because booking travel tickets is related to booking accommodation.

Travelers who take planes are generally inter-island travelers. The number of people who use Java crossing is not significant as plane passengers because of the many land transportation options.

"It is possible that this discount is more attractive to travelers who are just on vacation, not homecoming travelers. Because the price of international route tickets during the homecoming period does increase, significantly more expensive. Domestic ticket prices become more attractive," he said.

The decline in airfare amid the weakening rupiah, Alvin reminded, needs to be considered by many parties. Airlines will face the risk of too great a loss. The number of seats sold will not be affected. They will still suffer losses.

"As long as TBA does not change, it cannot (make a profit), especially if the government forces a reduction in (airline ticket) rates. The losses will definitely be even greater," said Alvin.

In addition to reducing airfares, the government will also implement flexible working for employees. The goal is to reduce traffic congestion and break up the movement of people.

The work from anywhere scheme as a form of flexibility is expected to be executed on March 24, 2025 or a week before Eid. The plan is supported by children's school holidays, so that both moments can be a solution to prevent congestion.

This effort is expected to anticipate potential congestion at two transportation service points that are closed during Nyepi Day, two days before Eid al-Fitr. Both are the crossing points of Ketapang Port (East Java) - Gilimanuk (Bali) and I Gusti Ngurah Rai Airport, Bali.

"This is expected to reduce peak traffic density on days or nights before Eid al-Fitr. We know that Eid al-Fitr will coincide with Nyepi Day. Well, we have to organize it properly so that there is no excessive congestion," said Agus.

In order to accommodate the movement of people, the Ministry of Public Works has coordinated with several related parties to implement a 20 percent discount on various toll roads in Indonesia. This effort is expected to reduce the cost of people's land travel.

Overloaded trucks or over dimension, over load (ODOL) will be regulated and their operations will be limited during the Eid period. The government wants to ensure that the responsibility for safety is not only on the driver, but also the vehicle owners.

"We want to make sure that not only drivers, but also owners are responsible so that their trucks do not exceed capacity, especially on densely populated and driver-heavy roads. That can cause accidents on the road," said Agus.

The Ministry of Transportation is also working with state-owned enterprises to provide free homecoming for 100,000 people. They will be transported using buses, trains, and ships.