Development tax may be imposed in Riau<\/p>\n
JAKARTA (JP): The government may impose a 10 percent
\ndevelopment tax on hotels and restaurants in Riau province to
\nsupport tourism, a minister said yesterday.<\/p>\n
The minister of tourism, post and telecommunications, Joop
\nAve, said imposing the 10 percent tax in Riau would pose no
\nproblems given the province's fast growing tourism sector.<\/p>\n
Joop said Riau had become one of Indonesia's most popular
\ntourist destinations, with Batam island, a special industrial
\nbonded zone in the province now turning into one of three major
\nentry points for foreign tourists in the country.<\/p>\n
\"It's a good idea to make Riau the 11th province to collect
\nthe tax,\" he said after opening Golden Hotel here Saturday.<\/p>\n
By Presidential decree, Indonesia's 10 most visited provinces
\nhave to impose a 10 percent tax on hotels and restaurants.<\/p>\n
The provinces are North and West Sumatra, Jakarta, West,
\nCentral and East Java, Yogyakarta, Bali, North and South
\nSulawesi.<\/p>\n
Twenty percent of the funds collected from this tax go to the
\nMinistry of Tourism, Post and Telecommunications to be channeled
\nto the Indonesian Tourism Promotion Board.<\/p>\n
Riau has become a favorite tourist spot for people living on
\nthe province's two major islands, Batam and Bintan.<\/p>\n
Batam, about 30 minutes by ferry from Singapore, is an
\nimportant industrial zone, while Bintan island is being developed
\ninto a tourist resort.<\/p>\n
The development of tourist facilities will enable the 120-
\nhectare Bintan Island to cope with a million visitors a year in
\n2000.<\/p>\n
Batam's Hang Nadim international airport has been upgraded to
\nhandle jumbo jets and this will further strengthen tourism.<\/p>\n
Batam, 20 kilometers southeast of Singapore, has also been
\ndeveloped as a tourist area as well as an export processing or
\nbonded industrial zone.<\/p>\n
Hang Nadim airport has been selected as one Indonesia's seven
\nmajor entry points. The other major entry points are Entikong, on
\nthe Indonesia-Malaysia border in West Kalimantan, and airports in
\nJakarta, Bali, Medan, Surabaya and Manado.<\/p>\n
Soekarno-Hatta airport in Jakarta was the major entry point
\nfor foreign arrivals from January to April this year, accounting
\nfor 38.1 percent of arrivals. Next was Bali's Ngurah Rai airport
\n(27.4 percent) and Batam island (26 percent).<\/p>\n
The Ministry of Tourism, Post and Telecommunications has
\nearned Rp 47.16 billion in development tax over the past three
\nyears, less than 20 percent of the targeted Rp 239.74 billion.<\/p>\n
Many of the 10 local administrations have been reluctant to
\npass on 20 percent to the ministry because they did not think the
\npromotion board did enough to bring foreign tourists to their
\nprovinces. (icn)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/development-tax-may-be-imposed-in-riau-1447893297",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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