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Emergency Relief Needed for Indonesian Tourism

Indonesian Finance Minister: Economic Relief and Incentives Coming Soon for the Tourism Sector

NusaBali reports that Indonesia’s Minister of Finance Sri Mulyani has confirmed that the Government is formulating incentives to help airlines, hotels, and other elements of the national tourism sector to weather the current downturn in travel resulting from the global coronavirus outbreak. 

Speaking at the Bogor Presidential Palace in West Java on Tuesday, February 11, 2020, Minister Mulyani outlined that incentives will likely take the form of subsidies to domestic airlines as part of a larger effort to enhance the purchasing power of the public to stimulate domestic travel. 

Explaining the exact nature of the promised incentives was still under review, the actual incentive measures to be introduced are still under discussion with the Minister of Transportation and Minister of Tourism and the Creative Economy.

Meanwhile, the Minister of Transportation Budi Karya Sumadi said that Bali, Bintan, and North Sulawesi were the three tourism destinations in Indonesia hardest hit by the current crisis resulting from the cancellation of direct air connections with Mainland China. Budi Karya expressed the hope that travelers to these three destinations will be able to purchase discount package prices, including airfare, hotel, and local transportation. 

Earlier, Tourism and Creative Economy Minister Wishnutama Kusubandio estimates that more than US$ 4 billion in foreign exchange losses may result from a year-long suspension of air connections between Indonesia and China.

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