Govt will pay all of the PPN DTP on domestic flights during Eid al-Fitr 2026

Jakarta, Thekabarnews.com—The Indonesian government has formally announced a tax break to help people get around during the Eid al-Fitr holiday season in 2026. The government will pay the entire 100% of the government-borne value-added tax (PPN DTP) on scheduled domestic economy-class flights for the 2026 fiscal year. The government stipulates this offer under Finance Minister Regulation (PMK) No. 4 of 2026 (PMK 4/2026).

Coordinating Economic Affairs Minister Airlangga Hartarto said that the policy is part of the government’s Eid stimulus package. Furthermore, the policy aims to boost purchasing power and foster economic growth in the initial months of the year.

According to the rule, the PPN DTP incentive only applies to economy-class aircraft tickets bought for domestic flights between February 10, 2026, and March 29, 2026. The offer is only available for flights that leave between March 14 and March 29, 2026.

The government pays the PPN DTP for the basic fare and fuel surcharge. However, passengers who buy supplementary services on top of the basic ones still have to pay PPN DTP on those extras.

For instance, if a traveler buys extras, like extra luggage or the ability to choose their seat, they still have to pay PPN DTP for those services. The policy doesn’t provide tax coverage for this component.

Even though they don’t have to pay PPN DTP, airlines nevertheless have to send out tax invoices or similar paperwork. In addition, they must also record the PPN DTP that the government pays in their monthly PPN DTP filings. 

Carriers must also send complete electronic transaction reports to the Directorate General of Taxation’s system by May 31, 2026, at the latest.

The government will revoke the PPN DTP facility for companies that do not comply with reporting requirements. As a result, you will have to pay the VAT on economy-class airline services according to current tax laws.

The goal of the strategy is to lower the cost of travel for millions of Indonesians who go back to their hometowns during the Eid al-Fitr holiday. At the same time, the plan aims to boost the tourism and aviation industries.