Indonesia Tourism Minister's calls for yacht tax to be erased will boost choice of charter yachts

By Rebecca Bradbury 25 July 2018

Indonesian Tourism Minister Arief Yahya has said abolishing yacht tax would increase yachting vacations in Indonesia, thus widening the country's choice of luxury charter yachts available for travellers.

The discussion took place yesterday in a meeting for the Proposed VAT Luxury Goods for Foreign Yacht Deletion Discussion at the office of Coordinating Ministry of Maritime Affairs.

“With this deregulation, it will simplify and also attract more yachts carrying foreign tourists to visit Indonesia and will increase the country’s foreign exchange,” said Coordinating Minister of Maritime Affairs Luhut Binsar Panjaitan during the meeting.

Indeed, not only would the tax changes have positive outcomes for charterers visiting the country, but Indonesia would also benefit from the increase of the tourism sector’s state revenue and the profits gained from the larger number of yachts coming in through ports and operational maintenance.

Indonesian Tourism Minister meets with Coordinating Ministry of Maritime Affairs and Head of the Investment Coordinating Board (BKPM) to redue yacht tax

Currently, only yachts with an Indonesian flag can undertake charter vacations in the country's waters. But, if the tax eradication goes ahead, the country could follow in the footsteps of Spain, Croatia and Greece and introduce a license which allows foreign-flagged yachts to be chartered in the country.

The most popular charter yachts in Indonesia today are luxury gulets. These native yachts are usually built by highly skilled local boat builders and offer an authentic sailing experience. Yet, tax changes could see the number and variety of available charter yachts rise which, in turn, would increase the country's appeal among charterers.

Made up of more than 17,000 islands, the sprawling archipelago of Indonesia presents a wealth of charter opportunities. Until recently, the waters were completely off the charter grid but, in recent years, the country has been gaining in popularity as an unrivalled yachting destination.

Made up of more than 17,000 islands, the sprawling archipelago of Indonesia presents a wealth of charter opportunities.

Discerning travellers visiting the country on a private yacht charter can expect deserted islands, secluded coves, isolated beaches, unique wildlife above and below the water and breath-taking backdrops of jungle-covered mountains and verdant paddy fields.

A group of remote islands making up the Komodo National Park is a fantastic place to visit. At its hub is Komodo, an island named after the iconic dragon-like lizards which inhabit the park. World-class dive sites, a pink sand beach, a laid-back way of life and picturesque landscapes also await.

Another popular region for superyachts is the Raja Ampat island-chain, famed for being ‘the last paradise on earth’. The 1,600 largely uninhabited islands are a haven for scuba divers as the waters are home to more varieties of marine life than anywhere else on the planet.