Indonesian government discounted flight ticket to ten domestic destinations beginning from March 1 until May 31 2020. The ten destinations are Batam, Denpasar, Yogyakarta, Lombok, Labuan Bajo, Malang, Manado, Silangit, Tanjung Pandan, and Tanjung Pinang. That was announced by Transportation Minister Budi Karya Sumadi during a press conference at Soekarno-Hatta airport, Tangerang, Banten on Saturday (29/02). This move was taken following Covid-19 outbreak that had dropped off tourism in the whole world.
Minister Budi Karya Sumadi explained, government provided more than 500 billion Rupiahs fund. While the discount from government is 30 percent to ten destinations. The fund might be increased if followed by the total passenger increase. The Minister predicted, around 430 thousand seats will get the discount in three months. The discount will be given to 25 percent of every flight.
President Joko Widodo had two closed meetings to alleviate the falling domestic tourism activity, mainly because of coronavirus epidemic.
Meanwhile, Transportation Ministry’s Air Transport Director General Novie Riyanto said that coronavirus had made some countries issued travel ban and hence significant decrease in flight passenger. For instance, the flights from and to Bali that averagely were around 470-480 flights per day, now had only 400 flights.
Besides flight discount, the government also gave incentive to hotel operators in the ten destinations by waiving value-added tax (PPN). This policy was done through Finance Ministry that will give subsidy to hotels or value-added tax delay. Additional incentive is also given by Tourism Ministry to travel agency that serves international tourists.