Indonesia readies transport stimulus for 2nd half of 2026

Jakarta (ANTARA) - The Indonesian government has prepared a transport fare stimulus package for the school holidays and the Christmas and New Year holiday periods to boost economic growth.

"Entering the second half of 2026, the government is preparing a stimulus package aimed at driving economic activity," Indonesian Government Communications Agency (Bakom) Head Muhammad Qodari said in a press conference in Jakarta on Wednesday.

According to him, the stimulus package specifically targets two key periods: the school holidays in June–July 2026 and the Christmas and New Year holidays at the end of the year.

Specifically, he explained that the package includes a 30 percent discount on land and sea transport, a 100 percent discount on port fees, and government-borne value-added tax incentives for airline tickets.

For the June-July school holidays period, the government has allocated Rp190.5 billion (around US$10.7 million) for land and sea transport discounts, as well as port service fee waivers.

Meanwhile, a 100 percent government-borne VAT incentive will apply to domestic economy-class airline tickets, with a budget of Rp472.7 billion (approximately US$26.6 million).

For the Christmas and New Year period, Rp61.4 billion (around US$3.4 million) has been allotted for land and sea transport ticket discounts, alongside Rp722 billion (approximately US$40.6 million) in VAT incentives for flights.

In an effort to boost domestic mobility and safeguard public purchasing power amid global economic uncertainty, the Indonesian government continues to leverage transport stimulus packages during peak travel seasons, including the Eid al-Fitr holiday earlier this year.

Incentives provided during this year's Eid holiday included a 30 percent ticket discount for trains and sea transport and a 17 to 18 percent fare reduction for economy-class flights.

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Translator: Prisca T, Genta T, Raka A

Editor: Azis Kurmala

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