Indonesia government will pay out Rp3.3 trillion in grants to help tourism businesses

Thursday, October 29, 2020

The government of Indonesia will pay out Rp3.3 trillion in grants to help the businesses related to tourism particularly hotels and restaurants. It’s expected that this move would lessen the impact of COVID along with funding improved health protocol implementation at various tourist destinations.

To quote Wishnutama Kusubandio, the minister of tourism and creative economy, at a web-press conference last week: “This is the first of various recovery programmes that are expected to help the hotel and restaurant industry, which is facing financial difficulties as well as local administrations that are losing out on tourism revenue due to the pandemic.”

As part of the National Economic Recovery programme, this financial aid is hoped to be disbursed until December. Recipients of this aid comprises 10 priority tourism destinations and five super-priority destinations, provincial capitals, branded destinations and regions that are included in the calendar of events of the ministry. Also, financial assistance will be provided to the regions where revenue from hotel and restaurant tax accounted for at least 15 per cent of its income generated locally during the 2019 financial year.

Around 70 per cent of the grant will be distributed to the hotels and restaurants, as the rest will be kept aside for regional cash injection.

Maulana Yusran, deputy chairman of the Indonesian Hotel and Restaurant Association, explained that the grant would be distributed on the basis of the tax contribution of hotel or restaurant in 2019. To qualify for the assistance, businesses need to show a proof of their 2019 tax payment.

As there is much inquisitiveness about the course of action to access this aid, Andhy Irawan, CEO of Dafam Hotel Management, has requested the government to make its communications better.

He highlighted the danger of various impediments should different Indonesian regions interpret the grant distribution in a different way.

« Back to Page