Indonesia to Provide $744-M in Subsidies

The Indonesian government said it would provide at least 744 million dollars in subsidies for workers, airlines, hotels, tourists and regional governments in Indonesia’s major tourist destinations to counter the economic slowdown as a fallout from the COVID-19 outbreak.

Since February 2, Indonesia has closed its borders to all travelers coming from China. The Chinese were the second-largest group of foreign tourists visiting Indonesia last year, and their absence could cause local businesses to lose 500 million dollars in tourism revenue per month. 

The government decided to draw up a stimulus package worth 744 million dollars in subsidies, tax cuts and accelerated cash-transfer and unemployment benefit programs in Indonesia’s major tourist destinations of Bali, North Sulawesi and the Riau Islands. 

Indonesia may expand by only 4.7 percent in the first quarter of 2020, the slowest since 2015.

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