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Government encourages incentives for airlines amid coronavirus outbreak

13 February 2020 12:57

JAKARTA - The government is encouraging all related stakeholders to provide incentives to airlines in order to anticipate the impact of the coronavirus outbreak.

This was conveyed by Transportation Minister Budi Karya Sumadi after a meeting with Tourism Minister Wishnutama Kusubandio, airline representatives, and PT Angkasa Pura (Persero) I and II as airport operators.

According to Mr Sumadi, the suggestion is a follow-up to President Joko Widodo’s direction regarding the economic impact of the coronavirus outbreak, especially in destinations popular among Chinese tourists such as Bali, North Sulawesi, and the Riau Islands.

“Government incentives for airlines can include lower non-tax revenues, lower landing fees from Angkasa Pura I and II, discounts on leases, and others. The government, airport operators, airlines, and hotels need to work together to provide incentives,” said Mr Sumadi as quoted from an official statement on the Cabinet Secretariat’s website.

Such incentives, he added, are expected to help the aviation and tourism sectors to withstand the economic impact of the coronavirus outbreak.

“In the next few days we will issue a clarification, which will be recommended to the President next week,” said Mr Sumadi. (MS)

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