Indonesia is rolling out sweeping travel discounts across the country’s public transportation networks to encourage domestic tourism during the upcoming school holiday period.
From June through July 2025, families traveling by train, ferry, or economy-class flights will see their transportation costs fall, as the government launches a Rp940 billion ($58 million) subsidy program aimed at spurring mobility and consumer spending.
“In line with the school holidays and the start of a new academic year, the government is offering transportation discounts,” Finance Minister Sri Mulyani Indrawati said Monday at the Presidential Palace in Central Jakarta.
“We hope this will boost domestic economic activity through increased travel.”
Land, air, sea travel discounts
Under the program, passengers on trains operated by state railway firm KAI will receive a 30 percent discount on tickets — a benefit the government estimates could apply to some 2,8 million travelers over the two-month period.
Economy-class air passengers will see a 6 percent cut in value-added tax on tickets, potentially easing costs for around 6 million flyers, Sri Mulyani said. “This is expected to slightly ease the cost of economy-class airfares,” she added.
Sea transportation will see the steepest discount, with ferry passengers receiving 50 percent off fares. The Ministry of Finance expects around 500.000 people to benefit from the sea transport subsidy.
The transportation incentives are part of a broader Rp24,44 trillion ($1.5 billion) stimulus package targeting the June–July holiday window. Additional measures include toll road discounts, extended wage subsidies, additional social aid, and ongoing reductions in occupational accident insurance premiums.
With the archipelago’s peak travel season approaching, officials hope the package will encourage more Indonesians to explore domestic destinations — and spend along the way.
