Indonesia Domestic Flight Fares Drop as VAT Exemption Takes Effect

Domestic airfares across Indonesia are cheaper right now. The Indonesian government introduced a 60-day VAT exemption on domestic flights starting in late April 2026, removing the 11% Value Added Tax from base fares and fuel surcharges. The effective saving for passengers is approximately 10–12% on total ticket prices.

The measure was introduced after Pertamina, Indonesia’s state energy company, raised domestic aviation fuel prices by roughly 70% from 1 April 2026. The VAT exemption is designed to offset the impact on travellers and keep domestic routes financially viable for carriers.

The window runs through late June 2026, meaning anyone travelling within Indonesia until around 25 June can book at reduced rates.

Which routes are included

The exemption applies across all domestic routes, including flights to and from Bali (Ngurah Rai Airport), Jakarta (Soekarno-Hatta), Yogyakarta, Surabaya, Labuan Bajo, Lombok, and smaller regional airports. The government has explicitly encouraged travellers to use the lower fares to explore emerging destinations beyond Bali — islands like Sumba, Flores and Labuan Bajo for Komodo National Park, or Sulawesi for diving.

Practical impact for visitors

International visitors arriving at Bali or Jakarta who want to add a domestic multi-island leg will find this an unusually good moment to book. A Bali–Labuan Bajo connection, for instance, typically runs in the IDR 500,000–900,000 range (roughly USD 30–55); fares during this window are measurably lower.

Booking is straightforward through Lion Air, Citilink, Garuda Indonesia and Batik Air via their own platforms or aggregator sites. Yogyakarta is served from Bali on multiple flights per day, making it easy to add a cultural leg to a beach-focused itinerary.

Entry requirements reminder

Visitors entering Indonesia need a Visa on Arrival (VOA) or e-VOA for most nationalities. The fee is IDR 500,000 (approximately USD 35) for a 30-day stay, extendable once. Apply via the official All Indonesia platform before travel. For full details on entry requirements, see our Indonesia visa guide.

For planning getting between islands and cities, our getting around Indonesia guide covers domestic airlines, ferries and overland options.

The VAT exemption is a short-term measure — book domestic legs now to lock in the lower fares before the window closes at the end of June.