The Indonesian government is considering scrapping the luxury tax applied to Superyachts arriving in the country, Indonesia’s Finance Minister Sri Mulyani Indrawati has said. The current tariff, which can be as high as 75 per cent, severely limits the number of luxury vessels choosing to enter Indonesian ports.
While this isn’t the first time reducing or removing the tax has been proposed, Joko Widodo’s government has often announced its intention to increase the country’s revenues from tourism. Scrapping the luxury tax, known as PPnBM, is likely to result in a dramatic increase in Superyacht and cruise ship arrivals, bringing a lot of foreign exchange earnings into Indonesia.
Luhut Panjaitan, Indonesian Coordinating Minister for Maritime Affairs, said that the government currently collects about IDR 3 billion (approx. USD $200,000) per year through PPnBM applied to luxury vessel arrivals. It is believed removing the tax could bring in a further IDR 6 trillion (approx. USD $414 million) per year.
While it is widely believed that the beautiful Southeast Asian country has a lot of untapped potential as a tourist destination, it also has severely underdeveloped infrastructure for supporting a rapid increase in arrivals. The harbours and ports, in particularly, will require significant investment and improvement.
Footnote:
Contact Seal Superyachts Indonesia for detailed information about cruising around Indonesia, superyacht charter regulations and about how we can support your visit.
Principle agent Andy Shorten is proud to have worked with many of the World’s largest Superyachts and has extensive knowledge of Indonesia and the surrounding area.
Andy Shorten
Phone: +62 81 338 732 764
Email: info@thelighthouseconsultancy.com