TEMPO.CO, Jakarta - The Finance Ministry said the government will issue a stimulus for Quarter 3/2020. The ministry's head of Fiscal Policy Department (BKF) Febrio Nathan Kacaribu said the stimulus will be disbursed once Indonesia resumes its economic movements.
"By quarter three, people will anticipate traveling, as they have been quite bored at home. That's why, we will prepare a stimulus for tourism, restaurants, transportation. Hopefully, there would be more in the fourth quarter," he said in an online discussion in Jakarta on Wednesday, May 13.
Among the stimuli are discounted airline tickets to certain travel destinations, as well as tax incentives for hotels and restaurants.
Febrio said the stimulus is an attempt by the government to increase the consumption rate of the middle class.
Febrio said that the COVID-19 pandemic has suspended the life of the tourism sector, causing consumption growth in Q1/2020 to decelerate to just 2.8 percent. It is expected that consumption will decline further in the second quarter as the government implements large-scale social restrictions in a number of major cities.