Bank Indonesia Goes Down the Mountain to Help the Recovery of the Tourism Sector to Secure Foreign Exchange

JAKARTA - Bank Indonesia (BI) and the government affirm their commitment to strengthening synergies to encourage the recovery of the tourism industry sector so that it can contribute more to the national economy.

BI Deputy Governor Dody Budi Waluyo said tourism is a very strategic line considering its large role in contributing to foreign exchange and providing added value to the economy.

"The momentum for tourism recovery continues in line with the control of the COVID-19 pandemic and the easing of mobility restrictions in various countries, including Indonesia", he said in an official statement quoted on Tuesday, October 4.

However, Dody assessed that the challenges of the global economic slowdown, the risk of stagflation, and high uncertainty need to be monitored closely. Therefore, the momentum for the recovery of the leisure industry needs to continue to be optimized, including the consistency of good tourism development policies as well as strengthening the current account and strengthening national economic resilience.

"Bank Indonesia is fully committed to continuing to synergize with the central and regional governments to increase the role related to tourism-electronics, among others, through strengthening advocacy and studies, developing MSMEs, and digitizing the payment system to support tourism", he said.

On the same occasion, Deputy for Tourism and Creative Economy of the Coordinating Ministry for Maritime Affairs, Odo R.M. Manuhutu stated that collaboration in the recovery of the tourism sector is expected to be easier and synergistic. He reiterated the President's directive to invite people to travel within the country.

"In this regard, we support strengthening the implementation of the Proud Traveling #diIndonesiaAja program with a target of 1.4 billion domestic tourist movements by 2023. As well as accelerating the development of sustainable tourism to increase competitiveness", he said.

Similarly, the Deputy for Destination Development and Infrastructure of the Ministry of Tourism, Vinsensius Jemadu, said that the government continues to optimize opportunities from the still high global travel demand.

"We continue to strive to overcome the various challenges faced to ensure the development of destinations goes well to strengthen national tourism going forward", he said.

Meanwhile, the synergy between BI and the government is contained in 10 strategic steps to accelerate the recovery and strengthening of national tourism.

1. Continuing and optimizing tourist relaxation, including by reviewing improvements to regulations related to visas

2. To accelerate the improvement of air transport capacity and frequency, in particular, to support mobility to tourist destinations, in line with increasing demand

3. Accelerate the development of 5 Super Priority Tourism Destinations (DPSP), including being supported by increased amenities and the application of sustainable tourism principles (quality tourism)

4. Continuing the development of Priority Tourism Destinations (DPP) and other tourism destinations, supported by budget allocations and asset management arrangements that have been developed

5. Ensure the implementation of international and national scale events that have been scheduled, including the agenda for the Kharisma Event Nusantara (KEN) 2022 and a series of activities supporting the ASEAN chairmanship in 2023

6. Increase the synergy of government support for the implementation of Meetings, Incentives, Conferences, and Exhibitions (MICE)

7. Continuing incentive support and increasing access to financing for tourism and creative economy (parekraf) business actors and tourist villages, including through macroprudential policy support for priority sectors

8. Encouraging program synergies in the development of MSMEs supporting tourism and tourist villages, including expanding the digitization of payment transactions, including through QRIS and utilizing the potential of inter-country QRIS

9. Encouraging the promotion of the opening of wider Indonesian tourism through a series of Proud Berwisata Indonesia (BBWI) 2023 activities

10. Accelerate vaccination and expand the application of Cleanliness, Healthy, Safety, and Environmental Sustainability (CHSE) with SNI standards in tourist destinations.