Jakarta. Indonesia is making it cheaper to travel this school holiday season. From June to July 2025, the government is offering major discounts on public transportation, including 30 percent off train fares, 6 percent off VAT for domestic economy flights, and 50 percent off ferry tickets. The move aims to boost domestic tourism and support the economy while giving families more reason to explore the archipelago.

Finance Minister Sri Mulyani Indrawati announced the travel incentives on Monday, saying the move aims to encourage families to travel within the country during the school break and the transition to a new academic year.

"In line with the school holidays and the start of a new academic year, the government is offering transportation discounts. We hope this will boost domestic economic activity through increased travel," Sri Mulyani said at the Presidential Palace complex in Central Jakarta.

Under the program, passengers taking trains operated by the state railway firm KAI will receive a 30 percent ticket discount. The subsidy is expected to benefit about 2.8 million passengers between June and July 2025.

The government is also offering a 6 percent value-added tax (VAT) discount on economy-class airline tickets, which Sri Mulyani said could benefit up to 6 million travelers. “This is expected to slightly ease the cost of economy-class airfares,” she said.

Additionally, sea transport passengers will receive a 50 percent discount on fares, potentially benefiting around 500,000 people during the holiday period.

The total budget allocated for the transportation discount program --including for trains, planes, and ships-- is Rp940 billion ($58 million), according to the finance minister.

The initiative is part of a broader Rp24.44 trillion ($1.5 billion) stimulus package for June–July 2025. Other components of the package include toll road discounts, additional social assistance, wage subsidies, and extended reductions in occupational accident insurance contributions.

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