Indonesia: Temporary VAT relief for domestic economy class air travel
Aims to offset rising operational costs driven by higher fuel prices
The Minister of Finance issued Regulation No. 24 of 2026 (PMK-24), providing temporary VAT relief measures for domestic air transport services.
The regulation grants government-borne VAT for a portion of economy-class domestic airfare, reducing the payable VAT and lowering ticket prices.
The measure aims to support the aviation sector and maintain travel demand by offsetting rising operational costs driven by higher fuel prices.
For more information, contact a KPMG tax professional in Indonesia:
Andy Utomo | Andy.Utomo@kpmg.co.id
Diana R. Hutagaol | diana.hutagaol@kpmg.co.id