The Indonesian government has decided to reduce domestic airfares by up to 14% during the Ramadan holiday period, Islam's largest celebration. This plan involves cutting the value-added tax rate to 5%, with the government covering an additional 6%, and reducing airfares by up to an additional 8%. During Ramadan, the 'mudik' phenomenon occurs, in which millions of people travel home, causing a surge in demand for airline tickets and a tendency for fares to rise. Through this measure, the government aims to reduce travel costs for ordinary citizens and stimulate the aviation industry.
