Thursday, 27 February 2020 08:16

Government Gives Incentive to Tourism Sector Through Flight Fare Discounts

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Govt gives incentive to tourism sector through flight fare discounts

Indonesian Finance Minister Sri Mulyani Indrawati (ANTARA)

Jakarta - 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. (ANTARA)

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