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TEMPO.CO, Jakarta - Coordinating Minister for Infrastructure and Regional Development Agus Harimurti Yudhoyono or AHY has announced a 13 percent decrease in domestic airfare prices. This fare reduction applies during the Eid al-Fitr holiday for departures from March 24 to April 7, 2025.
AHY stated that the airfare price reduction was made possible after the government succeeded in reducing airport fees, lowering aviation fuel prices at 37 airports, and reducing fuel surcharges. Additionally, there was policy intervention from the Ministry of Finance.
"This time, there is an additional incentive from the government in the form of partial VAT that the government will cover by 6 percent," said AHY during a press conference at Soekarno-Hatta Airport, Tangerang, on Saturday, March 1, 2025. Previously, during the Christmas 2024 and New Year 2025 period, the government reduced airfare by 10 percent.
Finance Minister Sri stated that she has issued the Regulation of the Minister of Finance (PMK) Number 18 of 2025. The PMK regulates the policy of the government, partially covering 6 percent of the VAT on domestic airfare tickets. With this policy, the public will only bear a 5 percent VAT burden.
"This will apply to ticket purchases from April 1 to 7 for travel between March 24 and April 7, 2025," said Sri.
The plan to reduce airfare prices was conveyed by President Prabowo Subianto on Friday, February 28, 2025. He issued this instruction in line with the Eid Al-Fitr and Nyepi Day moments that fall close together.
"The government is preparing to reduce airfare for the next two weeks," said Prabowo at the Halim Perdanakusuma Air Force Base in Jakarta on Friday, February 28, 2025.
Prabowo also stated that the government would lower toll rates on several sections. The head of state has also asked Minister of Transportation Dudy Purwagandhi, Minister of SOEs Erick Thohir, Minister of Public Works (PU) Dody Hanggodo, and all ministers to ensure safe and smooth public services ahead of the homecoming exodus.
Hendrik Yaputra contributed to the writing of this article.
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