Finance Minister Sri Mulyani said the details of proposal would soon be discussed with other related ministries, such the Health Ministry, Tourism and Creative Economy Ministry, Transportation Ministry, as well as State-Owned Enterprises (SOE) Ministry.
“Everything is currently being finalized, including how long the [initiative will run]. We are still calculating the different incentives offered during the low season and peak season.”
She added that the special offers would be supported by the state budget but did not elaborate on how much the government would set aside as a budget.
Under the plan, tourists visiting certain destinations will, among other deals, get discounts on flights and hotels.
“For instance, state-owned enterprises such as Pertamina and Angkasa Pura airport operator will provide incentives to airline operators. We will offer them in a package,” Sri Mulyani said, adding that the incentives can be in the form of a tax reduction, lower airport fees, lower handling fees, possibly lower jet fuel prices and the ease of obtaining airport slot permits for airlines.
“For example […], many airlines from Eastern Europe want to fly to Bali, but the problem so far has been the unavailability of slots. So, we see opportunities there,” Transportation Minister Budi Karya Sumadi said earlier.
The minister also urged airlines to reroute their China flights to new potential markets or add flights to their busiest routes. The potential markets include Australia and countries in the Middle East and South Asia like India, Pakistan and Bangladesh.
Meanwhile, Tourism and Creative Economy Minister Wishnutama Kusubandio said on Monday that discounts may be given to tourist visiting destinations such as Bali, Likupang in North Sulawesi, Bintan and Batam in Riau Islands, Yogyakarta, Lombok and Labuan Bajo.
“We will decide the incentive this week, we will have a follow-up meeting [on Tuesday]. We will coordinate so the incentives can be effective in reviving tourism,” he said.
The outbreak has also severely hurt local airline operators as a result of a government-imposed travel ban to and from China. Flag carrier Garuda Indonesia, for example, has halted 40 weekly flights to mainland China, while Lion Air Group, the largest private Indonesian airline, has suspended 30 weekly flights to China.
Indonesia saw 16.1 million foreign tourist arrivals in 2019, with Chinese visitors contributing 12 percent of all foreign arrivals.