Airlangga Reveals Expenditures Of Indonesians Abroad Potentially Causing IDR 324 Trillion Losses

JAKARTA - Coordinating Minister for Economic Affairs Airlangga Hartarto estimates that around 10 million Indonesians traveling abroad have the potential to cause losses to the country with an estimated USD 2,000 to shop so that the estimated total loss could reach around IDR 324 trillion.

"We calculate that if the expenditure is, let's say the most conservative is 2 thousand dollars. So that's approximately Rp. 324 trillion," he explained to the media crew, Friday, January 17.

Therefore, Airlangga emphasized that people who go abroad have the option to shop domestically or abroad and the main factor that encourages consumers to shop abroad is a more competitive price.

Airlangga emphasized that goods entering shopping centers in Indonesia such as malls are subject to various additional costs, such as entry fees, income tax, and VAT.

According to Airlangga, this causes the price of goods in Indonesia to be more expensive than other countries, such as Singapore, which do not impose these costs.

"Of course, it's different between Indonesia, which, for example, for goods that enter the mall, it costs 25 percent. Then it gets PPH, then it gets VAT. So compared to Singapore, there is no such thing. So automatically the goods in us are more expensive than elsewhere," he explained.

Responding to requests from entrepreneurs, especially from the Indonesian Mall Retailers and Renters Association (Hippindo), who asked for convenience in importing branded goods, Airlangga emphasized that imports of goods are currently relatively easy, as long as entrepreneurs pay entrance fees and taxes that apply such as PPh and VAT.

"Now it's also easy, the important thing is to pay the entrance fee. As long as he pays the entrance fee and pays the import PPH, the VAT is finished," he said.