Businesses want a say in permit fees

Businesses want a say in permit fees

The Jakarta Post, Jakarta

The city's new move to garner more revenue in permit fees from
businesses in the tourist industry apparently startled
businesspeople who claimed they were not involved in the
decision.

In a draft bylaw on regional fees, which was scheduled to be
approved on April 17, all managements of hotels, restaurants, and
malls would be required to pay more new fees, including permit
fees and yearly permit renewal fees.

Putu Ayu Aristya Dewi, marketing manager of Accor Group, which
operates four and five-star hotels such as Novotel and Mercure,
said on Monday that the group did not mind paying more fees as
long as the officials discussed the plan with the hoteliers
first.

"We don't mind paying fees but we hope that the bylaw won't be
endorsed just like that without discussing it with us. We want
discussion on the planned bylaw to be as transparent as
possible," Putu told The Jakarta Post.

She said that she had not heard about the draft bylaw.

Putu added that as a business unit that operated in Jakarta,
the Accor Group had to comply with whatever decision the
administration would make.

The draft bylaw, which will replace Bylaw No. 3/1999 on
regional fees, includes 29 new items, most of which are eyeing
the lucrative tourist industry for extra revenue.

The existing bylaw does not require the payment of any fees
for the establishment of tourism businesses, which also include
tourist resorts, cottages, bars, travel agents and nightclubs,
but the new one will impose fees ranging from Rp 125,000
(US$13.8) to Rp 30 million.

The establishment of a five-star hotel, for example, will cost
the management Rp 20 million in fees and another 10 million for
each subsequent year to extend the permit.

Handaka Santosa of Sogo department store and also the chairman
of the Indonesian Retailers Association admitted that he was
quite surprised that the city administration had never discussed
the plan with the industry.

"How can they have a plan without even discussing it with the
stakeholders of the tourist industry? I know that they can make
any regulation they want but it would be better if any new fees
were discussed with all the stakeholders," he told the Post.

He said that the tourist industry had already been burdened by
many types of fees.

Danny Leo Lukito, owner of the Suite Seven cafe located in
Kemang, South Jakarta, also criticized the planned bylaw saying
that the government should launch efforts to attract more
tourists to the country instead of taking more and more fees from
the industry.

"It is already tough for us now as we have lost 50 percent of
our expat customers since the bomb attacks rocked the country
several years ago. The government should try hard to launch a
campaign to bring back the tourists instead of imposing new fees
that will surely make us suffer," Danny said.

He said that businesspeople would be glad to pay more fees if
business had returned to normal again.