Global Trade Alert
Global Trade Alert

Indonesia: Government reduced the VAT on domestic flight services temporarily

Announcement

04 Jun 2025

In June 2025, the Minister of Finance of Indonesia reduced the VAT on domestic flight services provided by domestic airline operators temporarily.

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Number of interventions

1

1 certainly harmful

0 likely harmful

0 liberalising

List of interventions

Implementation date

05 Jun 2025

Revocation date:

31 Jul 2025

Updated: 29 Jun 2025
Tax or social insurance relief

On 4 June 2025, the Minister of Finance of Indonesia issued Regulation No.36/2025, reducing the VAT on domestic flight services provided by domestic airline operators. The VAT is reduced from 12% t...

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