Government Introduces Tourism Incentives to Cope with Geopolitical Dynamics

Jakarta — Minister of Tourism Widiyanti Putri Wardhana said the government has provided incentives for several aspects of tourism to face global geopolitical dynamics, especially in the Middle East.

“Of course the energy crisis is driving up jet fuel prices. The Ministry of Tourism, in collaboration with other ministries, is providing incentives such as discounts on economy-class air tickets, with the VAT borne by the government,” Wardhana said after attending the National Coordination Meeting on Tourism in Jakarta on Wednesday.

She also noted that the government has granted zero per cent import duties on aircraft spare parts, which is expected to help the aviation industry reduce costs.

Incentives such as discounts on economy-class seats are expected to help travellers travel more comfortably at affordable prices.

“We must navigate how to fill the gaps caused by the crisis in the Middle East,” she said.

She added that the Ministry of Tourism is currently targeting high-quality tourists who are not affected by increased travel costs and who want meaningful experiences.

“Not only looking at beaches or mountains, but how they can meet with communities. Indonesia is famous for its people, who are very friendly, so we are working hard to provide incentives so that travellers in the airline industry can also receive relief, and we will continue to pursue this and we will announce the next steps,” she added.

In addition, Rizki Handayani Mustafa, Acting Deputy Head of Industry and Investment at the Ministry of Tourism, assessed that the current strengthening of the dollar could be a favourable momentum for Indonesian tourism if used to good effect.

“This is something we need to consider, because the rise in jet fuel prices will impact travel costs, so I think this needs to be discussed,” he said.

Rizki noted that while the dollar’s strength can weaken the rupiah, the situation could actually enhance Indonesia’s destinations’ competitiveness.

“We become more competitive because prices are more affordable. I don’t want to say cheap, but affordable really. This is a strength, in my view. We have affordability strengths compared with other countries. So from the perspective of strength, and from the investment perspective for entrepreneurs,” he said.