Indonesia expands duty-free shops to support shopping tourism

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’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.

According to Tanoesoedibjo, the duty-free programme not only can boost Indonesia's economy, but also absorb labour, increase investment, and bring positive impacts on micro, small, and medium enterprises (MSMEs).

Through the programme, foreign tourists can 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 Singapore with the intention to shop there, so we prepare our mentality and money, not just impulsively shopping," Tanoesoedibjo was quoted by Antara news agency as saying.

She went on to say that shopping tourism is predicted to increase, both domestically and abroad. The global retail market size in 2022 reached 55.74 billion USD and is expected to double by 2030.

The average expenditure of Indonesian tourists on F&B or culinary is 17%, shopping was 12.44%, and souvenirs at 5.4% in 2021 while foreign tourists spent most on culinary, with a percentage of 21.94%, followed by shopping at 10%, and souvenirs at 3.2%, the official said./.