People mobility: New catalyst ahead of homecoming season
This article has been translated by PwC Indonesia as part of our Indonesia Infrastructure News Service. PwC Indonesia has not checked the accuracy of, and accepts no responsibility for the content.
Bisnis Indonesia - Mobilitas Masyarakat: Katalis baru menjelang mudik
3 March 2025
By Anitana Widyana Puspa and Dionisio Damara
The government is providing a discount on economy class airfares of 13%-14% and toll road tariffs of around 20% during the 2025 Eid transportation period, which lasts for two weeks.
This year's Eid transportation will be different compared to the same period in 2024. The reason is that people who want to return to their hometowns using economy class air travel will receive a discount on airfares of 13%-14% from the normal fare.
The airfare discount applies to all domestic routes from 1 March 2025 to 7 April 2025 for departures during the period 24 March 2025 to 7 April 2025.
Several national airlines started selling economy class tickets for flights from 24 March to 7 April 2025 in December. According to the online travel agent (OTA) Traveloka, AirAsia Indonesia is selling tickets for the Jakarta-Surabaya route for the 24 March 2025 flight at Rp677,300 per passenger, including a 50% reduction in the passenger service charge. This price is cheaper compared to the previous day on the same route, which was Rp929,300 per passenger.
Full-service airline Batik Air (Lion Air Group) also discounted the Jakarta-Surabaya route tickets to Rp1.15 million per passenger on 24 March 2025, compared to Rp1.38 million per passenger the previous day.
Conversely, PT Garuda Indonesia (Persero) Tbk on its official website is also selling economy class tickets for the Jakarta-Surabaya route on 24 March 2025 for Rp1.4 million per passenger, which is usually sold for Rp1.5 million per passenger.
Corporate Communications Strategic of Lion Group, Danang Mandala Prihantoro, stated that the group is adjusting economy class ticket prices for the period 24 March to 7 April 2025.
This adjustment is a form of support for the government's policy to reduce economy class airfares for the flight period 24 March to 7 April 2025, with the ticket purchase period starting from 1 March to 7 April 2025.
"This step is taken to ensure that the public can enjoy more comfortable travel, one of which is more affordable ticket prices. Lion Group is adjusting economy class ticket prices for 15 days," said Danang, Sunday (2/3).
In addition to cheap tickets, Danang emphasised Lion Air Group's commitment to ease of ticket purchase and online check-in.
The Coordinating Minister for Infrastructure and Regional Development, Agus Harimurti Yudhoyono, said the reduction in economy class airfares on domestic routes by 13%-14% followed the policy of reducing airport charges and lowering jet fuel prices at 37 airports.
Additionally, the reduction in the fuel surcharge for jet aircraft from 10% to 2% and for propeller aircraft from 25% to 20%. Furthermore, there is an additional incentive from the Ministry of Finance in the form of Value-Added Tax (VAT) borne by the government of 6%, leaving 5%.
"Overall, the government can reduce domestic economy class airfares by approximately 13%-14% for about two weeks," he said at Soekarno-Hatta Airport, Cengkareng, Tangerang on Saturday (1/3).
At the same event, Minister of Finance Sri Mulyani stated that the VAT relief incentive for domestic economy class airfares is to ease the burden on the public during Eid 2025.
The incentive is stipulated through Minister of Finance Regulation (PMK) Number 18/2025, which regulates VAT at 6%. "Consumers only pay 5% tax, meaning the government bears the rest," said Sri.
According to her, the Ministry of Finance's policy aligns with President Prabowo Subianto's directive to assist the public during Eid, considering increased mobility due to the tradition of homecoming and family gatherings.
The airfare discount is implemented after airport operators voluntarily reduced airport charges. President Director of PT Angkasa Pura Indonesia (InJourney Airports), Faik Fahmi, said the 50% reduction in airport service charges aims to support the reduction of airfares during Eid 2025.
Airport service charges consist of the passenger service charg and the Landing, Placement, and Aircraft Storage Service Charge (PJP4U).
According to him, the reduction in passenger service charge directly impacts the nominal airfare, and the reduction in PJP4U helps airline operations. This step is taken at all airports managed by InJourney Airports, totalling 37 airports.
"The reduction of these two airport service charges is a tangible contribution of InJourney Airports in reducing airfares," said Faik.
The passenger service charge (PSC) is a fee for services at the airport included in the airfare. When prospective passengers purchase flight tickets, the airfare already includes the PSC fee. The reduction in PSC directly affects the nominal airfare.
Specifically, the 50% discount on PJP4U for domestic flights applies to national airlines for the period 24 March to 7 April 2025.
Faik emphasised that the reduction in PJP4U is a manifestation of ecosystem-based airport management. "It is hoped that the 50% reduction in PJP4U can support airline operations during the Eid transportation period," he said.
Faik hopes that the reduction in airport service charges can encourage increased air traffic and realise economic equity in line with the Asta Cita vision of the Prabowo-Gibran administration.
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