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