Departure tax hike

Departure tax hike

From Bisnis Indonesia

I wonder what provides the rationale for a fourfold increase in the departure tax. During this protracted economic crisis, people have looked to the government to create incentives for recovery. Why then has this decision, which obstructs economic revival, been taken?

Is it correct that preventing people from traveling abroad will yield a greater benefit than removal of all such restrictions? Is a departure tax increase the most appropriate means by which to reach this goal? Allow me, as a layman, to put forward my own analysis.

A fourfold increase in the price of airline tickets out of Indonesia, the result of recent currency turmoil, means people now travel abroad only if it is really necessary. So, why increase in the departure tax? If the increase is intended to prevent a handful of business tycoons from traveling abroad, then it is misplaced, as they can easily afford Rp 1 million.

Is restricting overseas travel relevant in the present era of globalization? Those who go abroad are not necessarily the well- off. Sometimes members of the middle class travel abroad to study, receive medical treatment and undertake business. Is such a restriction in line with the spirit of a liberalized market?

A departure tax hinders international economic cooperation, and will eventually hinder economic growth. Our fellow ASEAN member countries have voiced objections over this matter.

The change is a big blow to travel agencies and airline companies. Business has been slow, even at the old departure tax rate. What now? How many travel agencies will now have to close down? How many more thousands of employees will be laid off. How much more social unrest will break out because of this inappropriate decision?

As a layman I need clarification. Why has the departure tax been raised. I see no reason to do so. Perhaps I have missed something.

R. RATNANINGSIH

Depok, West Java