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Gov’t provides up-to-down fiscal incentives to sustain tourism

Nusa Dua, Bali (ANTARA) – Deputy Minister of Tourism Ni Luh Puspa said that upstream to downstream fiscal incentives provided by the government to anticipate the increase in aviation fuel prices are aimed at boosting national tourism sustainability.“We are optimistic that tourism will remain well maintained,” Deputy Minister of Tourism Ni Luh Puspa said at the Bali Tourism Polytechnic Campus, here on Friday.She added that on the upstream side, the government has established fiscal incentives in the form of Value Added Tax (VAT) borne by the government of 11 percent for economy class tickets.President Prabowo Subianto, she continued, has instructed that airplane ticket prices be kept at a maximum range of 9-13 percent.The buffer incentive is expected to serve as support amid increases in fuel surcharges, with the upper limit set at 38 percent for all types of aircraft, Puspa said.Previously, the fuel surcharge limit was 10 percent for jet aircraft and 25 percent for propeller aircraft.The adjustment of these costs is unavoidable following the surge in global oil prices due to conflicts in the Middle East.“The hope is that everything will be a win-win solution, so that airlines do not suffer losses, and neither does the public; although there is an increase in ticket prices, it can still be controlled,” she added.In addition, on the downstream side, the Ministry of Tourism has been intensively communicating with tourism industry players to provide attractive tourist packages, such as bundling or special-price tour packages as a marketing strategy.She continued, in anticipation of a shift in transportation mode from air to land, the government has ensured that land transportation infrastructure is well connected, such as routes across Java, Kalimantan, Sumatra, and Sulawesi.Meanwhile, global oil prices had previously surged and are currently fluctuating, although they remain at around 100 US dollars per barrel, exceeding the macro assumption in the 2026 State Budget (APBN) of 70 US dollars per barrel.