Jakarta. The government has announced a 13 percent to 14 percent discount on domestic economy-class airfare during the 2025 Eid homecoming season to ease travel costs for holiday travelers. The policy, regulated under Finance Ministerial Regulation No. 18 of 2025, is set to support people returning to their hometowns for the holiday.

Chief Infrastructure and Regional Development Minister Agus Harimurti Yudhoyono (AHY) said the airfare discount applies to tickets purchased between March 1 and April 7, 2025, for flights scheduled from March 24 to April 7, 2025.

"The reduction in domestic economy-class airfare will remain in effect for about two weeks, with ticket prices decreasing by 13 percent to 14 percent," AHY said during a press conference at Soekarno-Hatta International Airport’s Terminal 2 in Tangerang on Saturday.

The government successfully lowered airport operational costs, including aviation fuel prices at 37 airports, contributing to the airfare reduction. "We hope this discounted airfare will help travelers returning home to celebrate Eid with their families," he added.

The government is also reducing the Value-Added Tax (VAT) on economy-class domestic flights to ease travel costs. Under a new regulation, passengers will pay only 5 percent VAT instead of the standard 11 percent, as the remaining 6 percent is covered by the government. The policy is outlined in Finance Minister Regulation No. 18 of 2025, which takes effect on March 1.

Ramadan is one of Indonesia’s busiest travel periods, with millions participating in the annual mudik tradition to return to their hometowns. Airlines typically see a surge in demand, leading to higher ticket prices. To ease travel costs and support the aviation industry, the government has introduced a VAT reduction on airfare.

According to a Transportation Ministry survey, an estimated 193.6 million people—around 71.7% of Indonesia’s population—undertook the Eid homecoming journey last year. This represented a 56.4% increase from the 123.8 million travelers recorded in 2023.

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