Government Announces Reduced Flight Ticket Prices for Eid Homecoming with a 14% Discount – March 24 to April 7, 2025
In an exciting development for travelers looking to head home for Eid this year, the government has unveiled a significant drop in domestic economy flight ticket prices, with discounts of up to 14%. This special ticket pricing will be available starting from March 1, 2025, for flights scheduled between March 24, 2025, and April 7, 2025. This window covers the busy travel period leading up to and following Eid al-Fitr 2025.
The Minister Coordinator for Infrastructure and Regional Development, Agus Harimurti Yudhoyono (AHY), shared that the reduction in flight ticket prices is the outcome of collaborative efforts between the government and stakeholders in the aviation industry. Various measures have been taken to achieve this, including operational cost reductions at airports, lower avtur prices at 37 airports, and adjustments in fuel surcharges. Additionally, the government is providing additional incentives through Partial Value Added Tax (VAT) coverage, lightening the financial burden on travelers.
With these incentives in place, domestic economy flight ticket prices are expected to experience a notable decrease for approximately two weeks leading up to Eid. AHY mentioned during a press conference at Soekarno Hatta Airport on Saturday, March 1, 2025, “The overall price reduction for domestic economy flight tickets over the course of about 2 weeks is around 13 to 14%.”
Minister of Finance Sri Mulyani affirmed that the government would be subsidizing a portion of the Value Added Tax (VAT) on flight tickets. This policy, outlined in Minister of Finance Regulation No. 18 of 2025 effective from March 1, 2025, means passengers will only need to pay a 5% VAT, with the remaining 6% covered by the government, resulting in an estimated 13% to 14% reduction in domestic economy flight ticket prices.
This incentive applies to ticket purchases made between March 1 and April 7, 2025, for flights scheduled between March 24 and April 7, 2025. For those who have already purchased tickets before this policy came into effect, there may be no VAT reduction. However, those who have yet to buy tickets can take advantage of the new pricing structure starting March 1.
Sri Mulyani emphasized that this policy demonstrates the government’s commitment to easing the financial burden on citizens who wish to travel for Eid, all while fulfilling its tax collection responsibilities. “We at the Ministry of Finance have taken steps to continue supporting and reducing the burden on the public, while still ensuring that we meet our state revenue collection obligations,” Sri Mulyani stated.
### Expert Insights: Impact of Reduced Flight Ticket Prices
When asked about the impact of the reduced flight ticket prices and VAT subsidies on travelers, aviation industry experts weighed in on the significance of these measures. Dr. Amelia, an aviation economist, highlighted how such discounts could lead to increased passenger traffic during the Eid holiday period. She explained, “By lowering ticket prices and offering additional incentives, the government is not only encouraging more people to travel but also stimulating economic activity within the aviation sector.”
### Flexible Working Arrangement to Ease Travel Woes
In addition to the discounted flight tickets, the government is also addressing the mobility challenges associated with holiday travel. To preemptively manage the surge in holiday travel and alleviate traffic congestion, the government is implementing a Flexible Working Arrangement (FWA) or work from anywhere (WFA) policy. AHY emphasized that this policy has been coordinated with the Ministry of Administrative and Bureaucratic Reform.
The goal of this initiative is to prioritize and initiate the distribution of mobility ahead of the Eid holiday, starting seven days before the peak travel period. By March 24, the work from anywhere or Flexible Working Arrangement policy is expected to be in full effect, allowing for smoother travel experiences for all.
As travelers gear up for the upcoming Eid celebrations, these new measures are set to make the journey home more affordable and convenient for everyone involved. With reduced flight ticket prices, VAT subsidies, and flexible work arrangements, this Eid promises to be a joyous and stress-free occasion for families across the country.
