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Tourism ministry to disburse grants next month

A new relief grant from the tourism ministry aims to buoy the nation's tourist industry through December, with a possible option for extending to 2021, pending its effectiveness in helping businesses offset the multifaceted fallout of the coronavirus crisis.

Mardika Parama (The Jakarta Post)
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Wed, October 28, 2020

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T

he Tourism and Creative Economy Ministry plans to start disbursing Rp 3.3 trillion (US$224 million) in relief grants to 101 selected cities and regencies in November, an official has said. The grant is intended to help recover the coronavirus-battered tourist industry.

Seventy percent of the grants would be disbursed to individual businesses, while the remaining 30 percent would be given to local administrations, according to the ministry’s crisis management expert, Hengky Manurung.

The eligibility of hotels and restaurants would be determined according to the 2019 hotel and restaurant tax (PHPR) data at local administrations, he added.

“The local administrations will need to actively disburse the awarded grants and provide us with the list of recipients to ensure the program’s success,” Hengky said at a virtual discussion on Oct. 23. “We expect the grant disbursements to be finished by November.”

Earlier on Oct. 8, the ministry held a virtual event to disseminate information on the tourism grant to officials from the 101 cities and regencies, according to a press statement.

The COVID-19 health emergency has devastated the tourist industry through the large-scale social restrictions (PSBB) imposed in several regions, as well as border closures to prevent imported virus infections. The measures have cut an estimated Rp 85 trillion from Indonesia’s tourist revenue as of July, with losses of around Rp 70 trillion recorded by the hotel and restaurant sector, according to data provided by the Indonesian Hotel and Restaurant Association (PHRI).

Read also: Govt to disburse Rp3.3 trillion grant for hard-hit tourist industry

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