Indonesia expands duty-free shops to support shopping tourism

Indonesia’s Deputy Minister of Tourism and Creative Economy Angela Tanoesoedibjo has said that her ministry, along with the Trade Ministry, encouraged the expansion of duty-free outlets to increase shopping tourism in Indonesia.

Indonesia's Deputy Minister of Tourism and Creative Economy Angela Tanoesoedibjo at the conference of Indonesia Discount Shopping Day (HBDI) in Jakarta on June 8. (Photo: ANTARA)

Jakarta (VNA) – Indonesia’sDeputy Minister of Tourism and Creative Economy Angela Tanoesoedibjo has saidthat her ministry, along with the Trade Ministry, encouraged the expansion ofduty-free outlets to increase shopping tourism in Indonesia.

According to Tanoesoedibjo, the duty-free programmenot only can boost Indonesia's economy, but also absorb labour, increaseinvestment, and bring positive impacts on micro, small, and medium enterprises(MSMEs).

Through the programme, foreign touristscan shop for a variety of local products, ranging from food and beverages,clothing, shoes, accessories, and others, without paying taxes, she noted.

"For instance, we want to go to Singaporewith the intention to shop there, so we prepare our mentality and money, notjust impulsively shopping," Tanoesoedibjo was quoted by Antara news agencyas saying.

She went on to say that shopping tourism is predictedto increase, both domestically and abroad. The global retail market size in2022 reached 55.74 billion USD and is expected to double by 2030.

The average expenditure of Indonesian tourists on F&B or culinary is17%, shopping was 12.44%, and souvenirs at 5.4% in 2021 while foreign tourists spent most onculinary, with a percentage of 21.94%, followed by shopping at 10%, andsouvenirs at 3.2%, the official said./.

VNA

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