Summary
Indonesia's Ministry of Finance has issued Regulation No. 24 of 2026 (PMK 24/2026), under which the government covers 100% of the Value Added Tax (VAT) on domestic scheduled commercial airline tickets in economy class. The incentive runs for 60 days starting 25 April 2026 and aims to support domestic tourism recovery.
Core Rules
PMK 24/2026 was enacted on 21 April 2026 and entered into force on 25 April 2026. Article 2 of the regulation provides VAT Borne by Government (PPN DTP) at 100% of the VAT payable on two ticket components: the basic fare and the fuel surcharge.
The facility applies only to economy class tickets on domestic flights. Passengers buying business or first class tickets are not entitled to the incentive, as set out in the regulation's technical annex.
Purchase and Flight Periods
Two timing conditions must be met simultaneously. First, the ticket purchase date must fall between 25 April 2026 and 23 June 2026. Second, the flight date itself must also fall within the same 60-day window. If either falls outside the period, VAT is collected normally under Article 4A of the VAT Law.
Airline Obligations
The Directorate General of Taxes (DJP) requires airlines to issue tax invoices for every transaction receiving the PPN DTP facility. Each tax invoice must carry the legend "PPN DITANGGUNG PEMERINTAH EKS PMK NOMOR 24 TAHUN 2026" in the reference field.
Airlines must also submit a detailed list of PPN DTP transactions electronically through the DJP portal. The deadline is 31 July 2026. If an airline misses the deadline, the facility is forfeited and the seller must bear the unpaid VAT.
Three Conditions That Void the Facility
The regulation lists three conditions that void the incentive. First, the service is provided outside the prescribed purchase or flight period. Second, the ticket is for a class other than economy. Third, the airline fails to submit the transaction report by 31 July 2026.
Policy Context
The incentive follows a similar 6% VAT discount on domestic airline tickets during the 2026 Christmas and New Year holiday season. The government's aim is to safeguard passenger purchasing power and support tourism and inter-regional connectivity.
The Ministry of Finance estimates the fiscal cost will be borne through the tax subsidy line item in the 2026 state budget. Officials view short-duration stimulus as more effective at boosting bookings than permanent measures.
Impact on Consumers
Consumers do not need to file any claim. The VAT discount appears directly in the total ticket price within the airline systems and authorized booking agents. Receipts and e-tickets are sufficient supporting documents if verification is required.
For business travel, accounting treatment and expense recognition follow the general rules. The portion of VAT borne by the government is not creditable as input VAT for corporate buyers.
Closing Note
PMK 24/2026 is a short-term fiscal instrument with limited validity. Taxpayers planning travel in the next two months can benefit, while airlines must keep their tax invoice administration and transaction reporting in order before 31 July 2026.