Southeast Asia’s second largest tourism economy reduces plane ticket prices to stimulate summer tourism
The Indonesian government is rolling out a series of incentives for passengers to reduce travel costs, stimulate tourism, and boost economic growth during the 2026 school holidays.
The support program includes a 30% discount on all commercial economy-class train services from June 20 to July 5 and on economy-class passenger sea transport routes from June 20 to Aug. 15, Indonesian Transportation Minister Dudy Purwagandhi said on June 21.
The government is also waiving certain port service fees from June 20 to July 5.
In addition, it will provide a 100% value-added tax incentive for scheduled economy-class airline tickets purchased for travel between June 24 and July 5.
Foreign tourists enjoy their holiday at Kuta beach near Denpasar, Indonesia’s Bali island on May 31, 2025. Photo by AFP |
According to the minister, these measures are intended to support travel during the summer tourism season while providing an additional boost to the transportation, tourism, and local economies.
The Indonesian government expects the programme to help increase domestic consumption and economic growth, he added.
Indonesia, Southeast Asia’s second largest tourism economy in terms of GDP contribution as ranked by the World Travel & Tourism Council, recorded 4.68 million foreign tourist arrivals from January to April, representing an 8.24% year-on-year increase.
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