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View all search resultsThe government has announced plans to spend Rp 13 trillion (US$773 million) on stimulus measures aimed at boosting travel and consumption during the upcoming festive period.
he government has announced plans to spend Rp 13 trillion (US$773 million) on stimulus measures in February and March aimed at boosting travel and consumption over Ramadan and Idul Fitri.
Office of the Coordinating Economy Minister Airlangga Hartarto unveiled the projected sum on Thursday but said the details “will be announced later”, according to Bisnis.com.
However, he did reveal that the incentives would include discounts on transportation as well as extra social assistance, like cooking oil and rice, for eligible recipients.
Susiwijono Moegiarso, secretary to the coordinating economy minister, said on Thursday that the incentive would push economic activity on both the supply and demand sides, similar to the stimulus package rolled out for last year’s Islamic festivities.
“We have begun to map out the targets, starting from trains, sea [transportations], ASDP crossings and air [travel],” Susiwijono was quoted as saying by Bisnis.com, referring to state-owned ferry operator PT ASDP Indonesia Ferry.
He said last year’s temporary value added tax (VAT) cut had brought down airfares by 13 to 14 percent and added that the government was seeking to bring ticket prices down further this year.
In 2025, when Ramadan and Idul Fitri fell in March, the government reduced to just 5 percent the VAT charged from consumers on airline tickets during the peak travel season from late March to early April.
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