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Govt allocates Rp1.54 trillion budget for travel ticket discounts

Jakarta (ANTARA) – The Indonesian government has allocated Rp1.54 trillion (approximately US$86.4 million) for travel ticket discounts in the second half of 2026 fiscal year, targeting school and end of year holidays to support public mobility.In a press conference here on Monday, Transportation Minister Dudy Purwagandhi detailed that during the school holidays, the government is offering a 30 percent discount on train tickets from June 20 to July 5.Furthermore, a 30 percent discount is applied for basic ship fares from June 20 to August 15, while port service fees under state-owned ferry operator, PT ASDP Indonesia Ferry, are waived from June 20 to July 5.”The total budget allocation is Rp190.5 billion, with a target of reaching 3 million passengers,” Purwaghandi said.Additionally, the government is providing a 100 percent government-borne Value Added Tax (VAT) incentive for domestic economy-class flight tickets. This programme has an allocated budget of Rp472.7 billion, aiming to reach 2.3 million passengers.As for the end of year holiday, Christmas 2026 and New Year 2027 periods, the government will again provide the 30 percent train ticket discount from December 22, 2026 to January 4, 2027.A discount of 30 percent will also be applied on basic ship fares from December 17, 2026 to January 10, 2027. Meanwhile, a waiver on port service fees will be effective from December 22, 2026, to January 10, 2027.”The total allocation for this period stands at Rp161.4 billion, targeting 2.8 million passengers,” the Purwagandhi added.A 100 percent government-borne VAT incentive will also be provided again for domestic economy-class flight tickets during the end of year holiday for 3.7 million passengers, supported by a Rp722 billion budget.In an effort to boost domestic mobility and safeguard public purchasing power amid global economic uncertainty, the government continues to leverage transport stimulus packages during peak travel seasons, including the Eid al-Fitr holiday earlier this year.Incentives provided during this year's Eid holiday included a 30 percent ticket discount for train and sea transport and a 17 to 18 percent fare reduction for economy-class flights.