Antara News·Indonesia·Monday, November 9, 2026 at 11:26 AM UTC

Government prepares VAT incentives for Christmas-New Year holidays

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Aditya Ramadhan/Prisca Triferna, Resinta S

Jakarta (ANTARA) - Finance Minister Suahasil Nazara said the government is preparing several Value Added Tax (VAT) incentives to support public activities during the 2026 Christmas and 2027 New Year holiday period.

"We have started implementing several VAT incentives for the Christmas and New Year holiday period. We will outline the details later," he conveyed when met at the Presidential Palace complex in Jakarta on Monday.

He arrived at the Presidential Palace complex for a limited meeting with President Prabowo Subianto.

Suahasil then explained the VAT incentives are part of the government's efforts to maintain public purchasing power and stimulate economic activity during the year-end holiday period.

The government previously issued Minister of Finance Regulation (PMK) Number 77 of 2026, stipulating full VAT coverage for domestic economy-class airline tickets by the government.

This facility is valid for ticket purchases between October 20, 2026, and January 10, 2027, for travel between December 22, 2026, and January 10, 2027.

The minister said this policy covers VAT on the base fare and fuel surcharge for airline tickets, while additional services such as baggage and seat selection remain subject to applicable VAT regulations.

In addition to the Christmas and New Year incentives, he previously explained the implementation of the Tax Collection System for Foreign Digital Transactions (SPP-TDLN) on November 9, 2026.

In his statement at the Financial System Stability Committee (KSSK) press conference on November 3, Suahasil emphasized that no new tax policy automatically applies VAT to every interbank transfer or digital wallet transaction.

The Directorate General of Taxes previously clarified that SPP-TDLN serves as a VAT collection mechanism for qualifying digital goods and services purchased from abroad, rather than a new tax or a policy imposing VAT on all financial transactions.

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