Govt gives incentive to tourism sector through flight fare discounts

Govt gives incentive to tourism sector through flight fare discounts

Indonesian Finance Minister Sri Mulyani Indrawati (ANTARA)

We estimate that plane ticket discounts can reach 50 percent. Thirty percent from the government and 20 percent from airline companies
Jakarta (ANTARA) - One of the incentives provided to the tourism sector to overcome the impact of the coronavirus, was discounts on airline tickets of up to 50 percent, Finance Minister Sri Mulyani Indrawati affirmed.

"We estimate that plane ticket discounts can reach 50 percent. Thirty percent from the government and 20 percent from airline companies," she said at the Ritz Carlton Hotel, Jakarta, Wednesday.

The government had allocated Rp444.9 billion for discounted ticket prices of 30 percent for 25 percent of the total number of airline seats, Sri Mulyani said.

She also reminded airline companies to provide separate discounts for tourists, not to use incentives provided by the government as a replacement.

"If the airline company offers a discount, it cannot be subverted with the 30 percent we give, so it must be above that," she said.

The former managing director of the World Bank reminded airline companies to follow this provision, as they would also get relief from state-owned enterprises such as Angkasa Pura with service facilities and Pertamina through aviation fuel discounts.

The government and Pertamina provided incentives in the form of aviation fuel discounts to airports in nine tourist destinations with a total discount of 265.5 billion rupiahs, which is valid for three months, she further said.

"Aviation fuel and Angkasa Pura will provide discounts on various service facilities including aircraft parking and others," she said.

Sri Mulyani stated that giving incentives was an attempt by the government to reduce the impact of the coronavirus or COVID-19 spread, which had suppressed state revenue through the tourism sector.

Related news: COVID-19 to likely inflict losses on Indonesia's tourism

Related news: Coronavirus: $2.8 billion losses likely on Indonesian tourism

Related news: China's coronavirus outbreak begins affecting Yogyakarta's tourism


Therefore, the government is also preparing other incentives to other parties, including foreign tourists, with an additional allocation of Rp298.5 billion, consisting of 98.5 billion rupiahs for airlines and travel agents to provide special discounts.

The government also charge zero percent hotel and restaurant tax rates in 10 tourist destinations and in return, the affected local government will be given a subsidy of 3.3 trillion rupiahs.

"Regional governments are asked not to collect hotel and restaurant taxes for six months but they will be replaced by the central government with the subsidy of 3.3 trillion rupiahs, so the regional government does not suffer losses," she continued.

She hoped that through these incentives, there can be a surge of domestic and foreign visitors participating in Indonesia's tourism in the near future so that economic activity in the tourism sector can return to normal.

"We provide various tourism packages ranging from hotels, restaurants, to travel agents and airlines. We hope this can increase the interest of traveling within the country and from countries outside of Indonesia except China," she said.

The areas given the incentives include Lake Toba, Yogyakarta, Malang, Manado, Bali, Mandalika, Labuan Bajo, Bangka Belitung, Batam, and Bintan. 

Related news: Bali government to discuss tourism sector revival amid COVID-19

Related news: Indonesia diverts attention to domestic tourists over coronavirus

Related news: Coronavirus outbreak disrupts tourist boom from China


Comments