Sandiaga Uno: Tourism Fees will Not Be Levied on Plane Tickets
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11 May 2024 11:00 WIB
TEMPO.CO, Jakarta - Tourism and Creative Economy Minister Sandiaga Salahuddin Uno assures that the tourism fee will not be imposed on plane tickets.
Tourism and Creative Economy Minister Sandiaga Salahuddin Uno has come under fire for the planned tourism fee, a policy aiming at collecting tourism fund contributions through flight tickets. In addition to burdening consumers, imposing tourism funds may potentially violate the Aviation Law as the levy is not one of the components in establishing ticket fares.
The polemic over the fee stemmed from the Coordinating Ministry for Maritime Affairs and Investment’s invitation to tourism stakeholders to a meeting to discuss the draft presidential regulation on funds for quality tourism. One of the topics on the agenda was the imposition of the tourism fee via plane tickets. “We could be cussed and bullied by the public if the fee is charged on flight tickets,” said Sandiaga.
Sandiaga Uno has said no to the scheme to collect contributions to the tourism fund via airfares, adding that contributions would come from the government. The tourism fund will be an endowment fund for three activities: marketing, promotion, and organizing events such as concerts and sports tournaments. The government has earmarked Rp2 trillion as an initial capital.
Sandiaga rejects the scheme of collecting levies through flight tickets. According to him, the source of tourism funding will come from the government and become an eternal fund. This budget can only be used for three activities, namely marketing, promotion, and event organization such as concerts and sports tournaments. The government has set the initial capital for this tourism fund at Rp2 trillion (around US$123.5 million).
The fund is to be managed by a state-owned company or the Finance Ministry, similar to the Endowment Fund for Education (LPDP). To prevent fraud and corruption, Sandiaga said periodic audits would be conducted, and reports would be open to the public. “Fund management will involve professional stakeholders,” he said.
Sandiaga Uno met with Tempo in South Jakarta on Thursday, May 2, for an interview during which he also explained the polemic over the designation of Pantai Indah Kapuk in North Jakarta as a national strategic project as well as United Development Party’s (PPP) chance of getting through to the House of Representatives (DPR) via a petition at the Constitutional Court. “We are optimistic”, said the former Chairman of PPP’s Election Campaign Team.
How did the idea of the tourism levy come up?
I was directly involved in the creation of the Indonesia Tourism Fund around the end of last year. At the time, Pak Erick Thohir was the interim Coordinating Minister for Maritime Affairs and Investment, and we sat down together. We felt left behind, seeing the Singaporeans and other governments heavily involved in their tourism events, such as sports (tournaments), music concerts, and cultural events.
Why is Indonesia lagging behind?
I saw how Tokyo, as well as other cities like Sidney, Melbourne, and Singapore, managed to reach deals with Taylor Swift. Their governments were actively involved. The Tokyo government bore half (of the fees). Meanwhile, the market-oriented Australia (contributed) 30 percent. The truly amazing one is the Singaporean government sponsored 100 percent. From the concert location to the organizers, they were all government entities.
How about the Indonesian government’s version of the tourism fund?
Several schemes were proposed. The first option is to be managed by a government enterprise called InJourney. The second option is the Finance Ministry via an agency related to sustainable tourism or the LPDP. This was discussed in a closed meeting.
What was President Joko Widodo’s instruction?
To reserve Rp2 trillion for something like an endowment fund. The government will fork it out, and the proceeds will be set aside for tourism activities. Our tourism revenues once hit US$16 billion before the Covid-19 pandemic. We will target the same figure and achieve US$20 to 25 billion in the next five years.
What kind of activities can be used to use this endowment fund?
During the meeting with the President, the fund allocation was locked for three (purposes), which are national branding, promotion, and organizing international events like concerts and sports tournaments.
Is it true that a tourism levy will be imposed on the public via air tickets?
This rumor emerged because of an invitation from the Coordinating Ministry for Maritime Affairs and Investment. From the discussion in the closed meeting with the President, the entire funding will come from the government. According to international law and regulations, this policy may not be used to calculate airfare. Perhaps a new study at a technical level should use the systems in several countries as references.
