Jakarta. The government is rolling out transportation fare subsidies for the second half of 2026, targeting the midyear school holiday season and the year-end Christmas and New Year travel period to spur domestic consumption and boost tourism.

“As we enter the second half of 2026, the government is preparing a stimulus package aimed at accelerating economic activity during two strategic periods: the June–July school holidays and the Christmas and New Year holidays at the end of the year,” Head of Government Communication Agency Muhammad  Qodari said during a press conference on Thursday.

For the school holiday period, the government has allocated Rp 190.5 billion ($10.67 million) to subsidize land and sea transportation fares, targeting 3.07 million beneficiaries.

The incentives include a 30% discount on train and passenger ship tickets, as well as a full waiver of port service fees for ferry crossings.

The government will also provide a 100% value-added tax (VAT) subsidy for domestic economy-class airline tickets under the VAT borne by the government (PPN DTP) scheme. The program has been allocated Rp 472.7 billion and is expected to benefit around 2.3 million passengers.

For the Christmas and New Year travel season, the government has earmarked Rp 61.4 billion for non-air transportation subsidies, targeting approximately 2.87 million travelers.

An additional Rp 722 billion has been allocated for VAT subsidies on domestic airfare during the year-end holiday period, with an estimated 3.7 million passengers expected to benefit.

“This collaboration between the government and the private sector is designed not only to support the tourism sector, but also to drive broader domestic consumption by strengthening retail activity, empowering MSMEs, and expanding family travel experiences across the country,” Qodari said.