Gov’t to Provide Incentives to Lore for Tourists Amidst Covid-19 Outbreak
Date 25 Februari 2020
In a bid to tackle the impact of the novel coronavirus (Covid-19) outbreak on Indonesia’s economy, the Indonesian Government has prepared an incentive worth Rp298.5 billion to attract more foreign tourists.
According to Coordinating Minister for Economic Affairs Airlangga Hartato, Rp98.5 billion of the total budget will be allocated for airlines and travel agents, Rp103 billion for tourism promotion, Rp25 billion for tourism events, as well as Rp72 billion for media relations and influencers.
“The Government will provide a 30-percent subsidy for ten domestic tourist destinations. The subsidy will be available for 25 percent of the total airline seats,” he said after attending a Limited Cabinet Meeting on Covid-19 Virus Impact on Indonesia’s Economy at the Presidential Office, Jakarta, Tuesday (25/2).
The seat quota in each flight, the Minister added, will be applied every day for three months, starting March to May 2020.
He also said that the Government will extend the subsidy if it successfully improves the country’s tourism industry.
“If there is an airfare discounts from airlines, the ones provided by the Government are additional discounts for passengers,” Airlangga said.
Airlangga went on to say that the Government will also cut Passenger Service Charge (PJP2U) for three months ahead by 20 percent for 10 destinations provided by state-owned airport operators PT. Angkasa Pura with a total value of Rp265.6 billion, adding that state-owned oil and gas firm Pertamina will also provide discounted jet fuel price at airports in 9 tourist destinations.
“Furthermore, there is also a special allocation fund (DAK) with a total of Rp147.7 billion for ten tourist destinations that are greatly affected by the virus. The Government has also planned to use Rp50.79 billion and Rp96.8 billion that will be allocated for tourism incentives.
Airlangga further said that the incentives for tourism industry in accordance with the association’s proposal regarding tax exemption for hotels and restaurants in ten tourist destinations.
The Government will also dispense a budget of Rp3.3 trillion to affected local governments due to the drop in hotel and restaurant tax revenue in those regions, he added.
“The Government will provide stimulus budget for ten tourism destinations, including Lake Toba, Special Region of Yogyakarta, the city of Malang, the city of Manado, the resort island of Bali, Mandalika, Labuan Bajo, Bangka Belitung province, the industrial island of Batam, and the island of Bintan,” Airlangga added. (MAY / EN)
Translated by: Syarifah Aisyah
Reviewed by: M. Ersan Pamungkas