Government reviewing incentive tourism's efficacy, timing over corona

Government reviewing incentive tourism's efficacy, timing over corona

Finance Minister Sri Mulyani Indrawati. (Antara/Dewanto Samodro/pri/ak)

It is not postponed. We just have to observe the effectiveness
Jakarta (ANTARA) - Finance Minister Sri Mulyani Indrawati affirmed that the government was assessing the efficiency and timing of incentive tourism to be adjusted in line with developments in the coronavirus (Covid-19) outbreak in Indonesia.

"It is not postponed. We just have to observe the effectiveness," Indrawati remarked at the Financial Services Authority (FSA) office, here on Thursday.

Indrawati affirmed that tourism incentives were flexible. The incentives were deferred if ineffective and also depending on the situation of the coronavirus outbreak.

"If the time is not appropriate, we can delay the incentives. We are flexible based on the situation in the industry," the minister stated.

Indrawati spoke of incentives, such as tax removal still being applied at hotels and restaurants at 10 tourist destinations.

"We still conduct tax cuts at hotels and restaurants. We prepare it along with the Ministry of Home Affairs and local governments," she noted.

Discounts on flight tickets will be applied. However, its implementation was still under discussion with the relevant ministry as well as the airline to see the exact time.

Furthermore, the minister stated that the government had prepared a second batch of fiscal incentives in order to further encourage the Indonesian economy that had begun to bear the brunt of the coronavirus outbreak.

On the other hand, Indrawati was yet reluctant to expound on the second batch of fiscal incentives, as it was still formulated in terms of direction, types, mechanisms, and sectors.

"We will inform when we have completed it," she noted.

The Finance Ministry has constantly monitored the impact of the coronavirus outbreak on Indonesia's economy, as the disease has spread further to 65 nations, including Indonesia.

"In China, the number of new infections has declined, but cases surfaced in other countries, such as Italy, South Korea, and Indonesia. This has not yet stopped, so we continue to monitor it," Deputy Finance Minister Suahasil Nazara had earlier remarked at a book launch with the Asia Development Bank (ADB).

Nazara stated that some policies were made as a precautionary measure against the impact of the outbreak, including the central bank BI's decision to lower its benchmark interest rate to 4.75 percent.

The Finance Ministry has issued the policy of fiscal stimulus that includes the discount price for flight tickets to boost the tourism sector.

The Financial Services Authority (OJK) will also issue a policy as a precautionary measure against non-performing loans, he stated.

The minister affirmed that those policies are projected to safeguard the Indonesian economy from the impact of the Covid-19 outbreak.
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