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Neighbors Ask Government to Revoke Fiscal Charge

ASEAN Partners Ask Indonesia to Get Rid of Rp. 1 Million Exit Tax.

(6/30/2003) A number of Indonesia's fellow-members in the Association of Southeast Asian Nations (ASEAN) have petitioned the Indonesian government to revoke the Rp. 1 million (approximately US$ 122) exit tax imposed on its citizens and residents whenever they travel abroad.

According to Indonesia's Minister of Culture and Tourism, I Gede Ardika, ASEAN partner nations have suggested that the removal of the tax for people living in Java and Bali and traveling to other ASEAN countries would help stimulate intra-regional travel.

Such a move, were it approved by the Government, would not be unprecedented. Indonesians living in border provinces, such as Manado (North Sulawesi) and Riau (Riau Archipelago), currently receive special exemptions under the fiscal exit tax policy.

According to Minister Ardika, while the Government's main concern is on how to increase inbound tourist flows to Indonesia, it acknowledges the importance of intra-regional cooperation in developing tourism and is considering the request from its ASEAN neighbors.