The conflict in the Middle East has set the travel sector on high alert. With the risk of a global jet fuel crisis just weeks away, leaders around the world are starting to put mitigation measures in place.
The Indonesian government has been among the first to implement a mitigation strategy, and it could just benefit Bali tourists.
The Indonesian Government has implemented a new policy that will cover the value-added tax on economy class domestic flight tickets nationwide.
The policy covers VAT on base fares and fuel surcharges, which in turn eases ticket prices for the travelers as airlines face higher operational costs due to surging fuel prices.
Speaking to reporters this week, Indonesia’s Coordinating Ministry for Economic Affairs, Haryo Limanseto, explained: “The facility applies to tickets purchased and flights taken within 60 days, starting one day after the regulation was enacted.”
The regulation, formally enacted on 24th April, is intended to ensure targeted, effective, and sustainable government support for the aviation sector and the wider tourism industry.
Limanseto explained, “The government has prepared mitigation measures to maintain the sustainability of the aviation industry and keep fares affordable, by limiting domestic fare increases to between 9 and 13 percent.”
This news comes as a relief to Indonesian nationals who want to travel across the archipelago and poses a fantastic opportunity for international tourists to save. With domestic airfares effectively VAT-free from mid-June, now is as good a time as ever for Bali tourists to consider adding on another destination to their vacation.
Destinations that can be reached by a short 30-60 minute flight from the domestic terminal at I Gusti Ngurah Rai International Airport include Lombok, Banyuwangi in East Java, Surabaya in East Java, and Sumbawa Besar in West Nusa Tenggara.
For tourists traveling to Lombok from Bali, it is an even toss-up between a fast boat and flying.
Sometimes flights and fast boat crossings can be the same price if you’re super savvy with searching for flight deals. It is possible to travel directly to Lombok from Sanur, with multiple crossings available multiple times a day.
With Lombok’s Mandalika set to once again host the Moto GP later this year, there is increasing demand for travel to Lombok, and the island is receiving a huge amount of investment to develop tourism.
For tourists willing to fly up to 90 minutes from Bali to make the most of the VAT cut, there are even more options. Labuan Bajo, aka Komodo National Park, is a 70-minute direct flight from Bali.
Labuan Bajo is one of Indonesia’s five Super Priority Destinations and is becoming an increasingly in-demand add-on adventure for Bali holidaymakers looking to expand their horizons.
For those seeking a serene island paradise, it doesn’t get much better than Tambolaka, aka Sumba, which is also a short 70-minute flight away. Bima in West Nusa Tenggara, Malang in East Java, Semarang in Central Java, and Ujung Pandang in Makassar can all also be reached in under 90 minutes in the air.
Pushing the map out further, taking a 2-hour flight from Bali to make the most of the affordable domestic flight rates over the next couple of months opens up the archipelago in even richer ways.
Of course, Jakarta is one of the most exciting cities on earth right now and can be reached in just under 2 hours. Culture capital Yogyakarta is perfect for all those seeking to take a deep dive into Indonesia’s spiritual and political past. Kupang in East Nusa Tenggara, Solo in Central Java, Banjarmasin and Balikpapan in South Kalimantan, aka Borneo, each offer some off-path adventures and cultural trails to follow.
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