City hoteliers order tax cut for business

City hoteliers order tax cut for business

JAKARTA (JP): City hoteliers and restaurant operators demanded
on Wednesday the city administration reduce hotel and restaurant
taxes by 50 percent, in a bid to help boost their business
competitiveness in the third millennium.

Owners of the Jakarta-based hotels and restaurants also
demanded the city reduce their operational costs, including water
and electricity tariffs.

"Seriously affected by last year's political and security
instability, our businesses need the city administration's help
to gear up for competition in the new millennium," said
chairwoman of the Jakarta office of the Indonesian Hotels and
Restaurants Association (PHRI), Yanti Sukamdani Hardjoprakoso.

Speaking on the sidelines of the association's Jakarta chapter
meeting, Yanti said Jakarta operators found it difficult to
compete with hotels and restaurants operating in the nearby areas
of Bogor, Tangerang and Bekasi.

"The city administration charges our hotels and restaurants a
10 percent tax, while hotels and restaurants outside the city
only pay 5 percent tax to their respective city administrations."

The city hoteliers and restaurant operators also requested the
city administration reduce their water and electricity tariffs.

"We hope the city administration sets the water and
electricity tariffs at the amount similar to the tariffs charged
to industry.

"Currently, we have to pay bills similar to those calculated
for individual households amount charged to individual
household."

Yanti said tariffs charged to households were greater than the
ones charged to industry.

"Our electricity bills can reach 40 percent of our total
costs."

With the lower taxes and duties, Yanti said PHRI members could
survive the competition and support the city administration's Sea
and Shopping tourism campaign.

The city administration is now developing sea tourism in the
Thousand Islands area north of Jakarta, while Pasar Baru market
in Central Jakarta is gearing up as one of the city's tourist
shopping destinations.

Yanti suggested the city administration should work to
eradicate the slum image of the Pasar Baru market in its efforts
to attract tourists.

"The city administration should clear the market from any bus
routes and develop the are into a big sidewalk. (jun)