Speaking at the Presidential Palace complex in Jakarta on Monday, she explained that the incentives are designed to offset potential economic slowdowns caused by global pressures.
The transportation incentive package includes three types of discounts. First, a 30-percent discount will be applied to train fares, targeting approximately 2.8 million passengers.
The government has allocated a budget of Rp300 billion (around US$18.4 million) for this program.
Second, a 6-percent discount on value-added tax (VAT) will be applied to economy class flight tickets. With a budget of Rp430 billion (approximately US$26.4 million), this initiative is expected to benefit about 6 million passengers.
Third, a 50-percent discount will be offered for sea transportation fares, targeting 500 thousand passengers. This program will be supported by a budget of Rp210 billion (around US$12.9 million).
The minister said that the total state budget allocation for the transportation discounts is Rp940 billion (approximately US$57.7 million), and the discounts will be provided for two months.
During the same period, the government will also roll out a 20-percent discount on toll road fares, which is expected to help around 110 million toll road users.
The budget for the toll road discount will not be sourced from the state budget. The Ministry of Public Works will announce its implementation via a circular.
According to Minister Indrawati, the incentive package is aimed at maintaining the momentum of economic growth, while encouraging community activities during the two-month school holiday period.
"While children are on school break, we hope people will engage in more domestic travel and boost local economic activity," she added.
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Translator: Andi Firdaus, Raka Adji
Editor: Primayanti
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