Gov’t to Provide Rp298 Billion Incentive to Boost Tourism

Minister of Tourism and Creative Economy Wishnutama holds a press conference after attending a Limited Cabinet Meeting at the Presidential Office, Jakarta, Tuesday (25/2). Photo by: Jay/PR

The Government provides Rp298 billion incentive to attract 736,000 tourists from Australia, America and Europe, Minister of Tourism and Creative Economy Wishnutama has said.

“We target tourists who have more than US$1,700 ASPA (Average Spending per Arrival) to give a large economic impact for Indonesia,” Wishnutama said after attending a Limited Cabinet Meeting at the Presidential Office, Jakarta, Tuesday (25/2).

The targeted tourists, he added, would generate approximately Rp13 trillion in foreign exchange.

“We will provide 30% discount for 25% of (airline) seats and discount for aviation fuel. For the total of 10 destinations, we provide 50% discount for the existing 25% seats,” he said.

Wishnutama added that the Government will also provide Rp147 billion Special Allocation Fund (DAK) to support tourism industry and boost tourism economy in regions.

In the meantime, Minister of Transportation Budi Karya Sumadi said that tourism incentives from the transportation sector come from the Government (with total incentive of Rp500 billion), state oil company Pertamina (Rp290 billion), and state airport company Angkasa Pura 1, Angkasa Pura 2, and Airnav (Rp100 billion).

Ministry of Finance, he added, will provide incentive in the form of cash, Pertamina will provide aviation fuel discount, and AP 1, AP 2 and Airnav will provide discounts on their products.

The policy is expected to come into force on 1 March for 10 destinations, namely Batam, Denpasar, Yogyakarta, Labuan Bajo, Lombok, Malang, Manado, Silangit, Tanjung Pandan, and Tanjung Pinang.

The Minister of Transportation further said that the average discount available would be 50%. “This afternoon we will finalize (the policy) and tomorrow we will summon all airlines,” he said. (RSF/UN/EN)

Translated by: Ridwan Ibadurrohman
Reviewed by: Mia Medyana