Transport Minister Hopes School Holiday Stimulus Will Boost Economic Growth

Indonesia is offering a range of transportation stimulus measures during the 2026 school holidays, aiming to reduce travel costs for the public and stimulate economic growth through increased mobility. The incentives span all modes of transport, including land, sea, air, and rail.

For sea travel, ferry services on key routes like Merak-Bakauheni and Ketapang-Gilimanuk will see port service charges waived from June 20 to July 5, 2026. This is expected to benefit approximately 160,000 passengers and 377,000 vehicles. Additionally, PT Pelni, the national shipping company, will offer a 30% discount on economy class tickets for its subsidized routes from June 20 to August 15, 2026, potentially benefiting around 693,000 passengers.

In the air sector, the government is providing a 100% waiver on value-added tax (VAT) for airline tickets between June 24 and July 5, 2026. For rail travel, a 30% discount on economy class train tickets will be available from June 27 to July 5, 2026, with an estimated 1.043 million passengers expected to utilize this offer.

Transportation Minister Dudy Purwagandhi expressed optimism that these stimuli will be well-utilized and positively impact the national economy. He believes the increased public mobility during the holidays will foster healthy economic growth. The minister also noted that the government is currently using a fuel surcharge adjustment mechanism for airline ticket pricing, rather than altering the upper tariff limit, a move that has been positively received by the aviation industry.