Foreign tourists to get tax refund

The government and the House of Representatives have agreed to introduce a "tax refund" mechanism for foreign tourists shopping in Indonesia to attract more tourists here.

"It will be applied to foreign tourists travelling to Indonesia by air," Vera Febyanthy, head of the working committee on value-added tax and luxury tax at the House, said Tuesday.

When the regulation becomes effective, foreign tourists will be able to get a tax refund for goods purchased here, she said.

However, the government and the House have not yet determined the minimum amount of goods they can get a tax refund for, she added.