Indonesia Waives VAT on Economy Flights to Lower Airfares Amid Rising Fuel Costs

• Indonesia will cover VAT on economy-class domestic flight tickets to reduce airfares amid rising fuel costs.
• The policy applies to tickets bought and flights taken within 60 days of the regulation’s enactment on April 24, 2026.
• Airlines must report VAT facility usage transparently; standard VAT applies to non-economy classes.
• The government aims to keep fare increases between 9% and 13% and has raised the fuel surcharge cap for flights.
• The measure is part of broader efforts to support the aviation industry and protect the public from rising energy prices.

Source: en.antaranews.com

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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