Indonesia supports shopping tourism through duty-free shops

09-06-23

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.

"If we make a branding of the duty-free program, then tourists visiting Indonesia will already have the intention to shop," Tanoesoedibjo said here on Thursday.

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

Through the duty-free program, she noted, foreign tourists can shop for a variety of local products, ranging from food and beverages, clothing, shoes, accessories, and others, without paying taxes.

"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 said.

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

Furthermore, the average expenditure of Indonesian tourists on F&B or culinary is 17 percent, shopping was 12.44 percent, and souvenirs at 5.4 percent in 2021.

Meanwhile, foreign tourists spent most on culinary, with a percentage of 21.94 percent, followed by shopping at 10 percent, and souvenirs at 3.2 percent.

"I see a very interesting trend, a culinary and shopping increase from year to year, well this is something we hope for," she said.

One of the duty-free outlets in Jakarta is located at the Sarinah Building.

The Sarinah Duty-Free showcases top local products and supports cultural diplomacy, while offering hundreds of international brands, ranging from cigarette products, alcoholic beverages, food, jewelry, accessories and fabric, Indonesian wine, tea, coffee, snacks, and many others.