Similar sailing vessels built for public transport are also exempted, while those imported for other uses are still subject to the levy, the tax office said in a statement today. The move is meant to boost marine tourism as it has vast potential, said Neilmaldrin Noor, head of public relations at the office.

Indonesia spans thousands of islands that would stretch from New York to London, but its cruise industry lags smaller neighbours such as Malaysia, Singapore or Thailand.

The government is exploring ways to improve tourism revenue as the local virus resurgence put a halt to plans to reopen island destination Bali, whose economy has been battered by the pandemic.

It’s currently building the country’s largest cruise port in Bali to accommodate ships up to 350m long, set to operate by end-2023.