The government of Indonesia plans to introduce a "tax refund" scheme for foreign tourists shopping in Indonesia as early as next year.

The government and House of Indonesia have agreed to approve the tax refund scheme in a bid to attract more tourists to come shopping here, which would eventually help increase the country’s foreign exchange income, Vera Febyanthy, head of the House’s working committee on the law amendment, said Tuesday.

Indonesia may start introducing the tax refund scheme as soon as 2010 as the bill on value-added tax and luxury tax is expected to be endorsed this year, having been first discussed in mid-2008 at the House.

"We have approved the tax refund (scheme).

"It will be applied to foreign tourists coming via air only, not including sea or land," said Vera, adding that the details of the tax refund mechanism would be elaborated later via government regulations.