”As much as Rp 98.5 billion will go to airlines and travel agencies to give discounts or other kinds of incentives. Around Rp 103 billion will go to the promotion budget and Rp 25 billion will be allocated for tourism activities and as much as Rp 72 billion will go to influencers,”The global COVID-19 outbreak has depressed the tourist industry, with Coordinating Maritime Affairs and Investment Minister Luhut Pandjaitan recently saying that the industry had lost an estimated US$ 500 million due to the tourists’ fears over the coronavirus.Airlangga said the government would also provide incentives for domestic tourists.“The government will give 30 percent discounts for 10 tourist destinations,” Airlangga said, adding that the discount would be enjoyed in March, April, and May. “If the program succeeds, it may be extended.”State-owned oil and gas holding company Pertamina will also provide discounts for aviation fuel during the same time period, amounting to Rp 265.5 billion in value, he said.The government will also encourage people to visit 10 tourist destinations – Toba Lake regency in North Sumatra, Yogyakarta, Malang in East Java, Manado in North Sulawesi, Bali, Mandalika in West Nusa Tenggara, Labuan Bajo in East Nusa Tenggara, Bangka Belitung, and Batam and Bintan in the Riau Islands – by waiving hotel and restaurant taxes.“In the future, the government will prepare other incentives that will follow the development of the coronavirus and its impacts on the economy in early or late April,” said Airlangga. (gis)Topics : The government is building up strategy to shield the tourist industry from the impact of the coronavirus outbreak, including by allocating as much as Rp 72 billion (US$5.2 million) to pay influencers to promote the country. Coordinating Economic Minister Airlangga Hartarto said paying influencers was among initiatives to boost demand in the tourist industry.“The government is allocating an additional Rp 298.5 billion to provide incentives for foreign tourists,” he told reporters on Tuesday after a closed-door meeting with President Joko “Jokowi” Widodo.
Will loan losses from the coronavirus recession get worse, much worse or extremely worse over the next six-to-12 months? All of the above, bank executives said this week.In reporting third-quarter results, CEOs and finance chiefs at the five biggest US lenders gave a muddled picture of what to expect. Economic conditions improved in recent months thanks to pandemic lockdowns lifting, as well as government assistance and loan forbearance. But it is not clear that stimulus programs will continue or whether the world is headed for a new wave of infections.”The economy and the markets this year have been defined more than anything else by the impact of the global health-care crisis,” Bank of America Corp Chief Executive Brian Moynihan said on Wednesday. “This has created a sinuous path for the recovery.” The US job market improved, consumer spending rose and borrowers continued to use extra cash to pay down debt, helping the overall credit picture. Banks put far less money aside for souring loans in the third quarter than they did earlier this year, and haven’t experienced any meaningful loan losses yet.However, Bank of America, Citigroup Inc, JPMorgan Chase & Co and Wells Fargo & Co executives warned that losses on various types of loans might not really take shape until next year. For instance, credit-card write-offs usually happen after 180 days of delinquency, and those borrowers are still largely current.“We’re still in the midst of a crisis,” said Citigroup Chief Financial Officer Mark Mason. The pandemic has put pressure on Citi’s credit card business, because customers used plastic less and paid down debt.Commercial borrowers facing pandemic-related business pressure are not slacking on payments yet, either. Bank of America expects commercial losses to be “lumpy” next year, depending on what happens to particular companies, Chief Financial Officer Paul Donofrio said. Goldman Sachs Group Inc Chief Executive David Solomon pointed to the restaurant, hospitality and oil and gas industries as particularly vulnerable.“There continues to be enormous uncertainty globally in the trajectory of the virus,” he said.JPMorgan, the largest US bank, has become more optimistic about how the pandemic may affect its loan book, with its “base case” scenario looking better than it did three months ago.The bank is far from certain the trajectory will continue though, with CEO Jamie Dimon saying reserves could be off by US$10 billion to $20 billion if things get a lot better or worse.“The economy has materially improved,” said Wells Fargo CEO Charles Scharf, pointing to all the factors that have helped buoy the economy for now. “However, there’s still a long way to go, and there remains significant risk to the recovery.”Topics :
The National Insurance Scheme (NIS) has begun what it said is a “restructuring” process that could see it being able to recover the funds it invested in the Berbice River Bridge Company.The Berbice River Bridge tool boothNIS Chairman, Dr Surrendra Persaud, who is also the new Chairman of the Berbice Bridge Company Inc (BBCI), said the insurance scheme is the largest investor in the Bridge project, and has taken up the responsibility of “leading the bridge management through a restructuring process,” to enable it to hopefully get back its monies.He said as it is now, the money received from NIS and other investors cannot service the Bridge since it also started functioning a few years later.“So right now the Bridge is in a position where it is unable to satisfy itself. So the NIS is leading the Bridge management through a restructuring process and while it is somewhat challenging, it is hoped that it is done and within the first quarter of next year…. NIS is able to receive its funds from its investments,” Persaud said on Thursday at the celebration to mark NIS’ 47th anniversary.Reports from a forensic audit conducted into the operations of the NIS earlier this year, showed there were two particular “major high risk investments” that were said to be potential losses to the scheme; the $5.1 billion investment into CLICO and the $2.5 billion investment in BBCI.The ownership structure of BBCI is made up of ordinary share capital of $400 million owned by private investors and preference shares of $950 million owned by NIS.